Running a charity or non-governmental organisation (NGO) in Singapore comes with important responsibilities — one of the most critical being the need for financial transparency and accountability. This is where the Charity or NGO Audit in Singapore plays a vital role.
Whether you’re managing a non-profit organization, an Institution of a Public Character (IPC), or a smaller community-based charity, understanding the audit requirements under the Charities Act is essential to stay compliant and gain the trust of donors, the public, and regulatory authorities.
In this article, we provide an in-depth look into what a charity/NGO audit in Singapore entails, who needs it, and how Koh & Lim Audit PAC can help your organisation with reliable and professional audit services.
What is a Charity or NGO Audit in Singapore?
A Charity or NGO Audit refers to the statutory audit of financial statements of registered non-profit entities in Singapore. These audits are conducted by public accountants registered with ACRA and are required to ensure the charity’s financial statements are:
- Prepared in accordance with the Singapore Charities Accounting Standards (CAS) or Singapore Financial Reporting Standards (SFRS) (depending on charity size and type)
- Fairly presented
- Free from material misstatements
- Compliant with the Charities Act and governance requirements
The audit assures stakeholders — including donors, grant-makers, regulators, and the public — that funds are used properly and transparently.
Who Needs a Charity or NGO Audit in Singapore?
According to the Charity (Accounts and Annual Report) Regulations, charities and IPCs are required to be audited depending on their annual gross income or total expenditure:
✔️ Charities with gross income or total expenditure > S$500,000
→ Statutory audit is required by an independent public accountant.
✔️ Charities with gross income or total expenditure between S$250,000 – S$500,000
→ Can choose to have either an audit or independent review.
✔️ Charities below S$250,000
→ Audit not compulsory, but still must maintain proper financial records and submit annual reports.
Additionally, Institutions of a Public Character (IPCs) must be audited regardless of income/expenditure, as they receive tax-deductible donations and must comply with enhanced reporting and governance standards under the Commissioner of Charities (COC).
Why is an NGO or Charity Audit Important?
✅ Legal and Regulatory Compliance
Auditing is mandatory under the Charities Act and required by the Commissioner of Charities (COC) and IRAS for IPCs. Non-compliance can result in penalties, removal from the registry, or loss of IPC status.
✅ Builds Trust with Donors and Stakeholders
Transparent financial reporting through audits assures donors and funding agencies that resources are used for the intended cause.
✅ Accountability to the Public
Charities and NGOs operate with public support and must be accountable for every dollar spent. Audits reinforce this accountability.
✅ Better Governance
An independent audit provides insights into internal controls, accounting policies, and risk management, helping the organisation improve its processes.
What Does a Charity Audit in Singapore Include?
A charity or NGO audit typically involves the examination of:
- Statement of Financial Activities (SOFA)
- Statement of Financial Position (Balance Sheet)
- Cash Flow Statement
- Notes to the Accounts
- Donor and grant income
- Use of restricted and unrestricted funds
- Procurement practices and disbursements
- Internal controls and financial policies
- Related party transactions
Auditors also check for compliance with the Charities Accounting Standards, and if the charity is an IPC, compliance with Code of Governance for Charities and IPCs.
Key Considerations in a Charity Audit
- Segregation of funds: Ensuring that restricted funds (e.g. donations for specific purposes) are not used for general operations.
- Proper documentation: Verifying invoices, donor acknowledgements, receipts, and board approvals.
- Governance policies: Reviewing policies around conflict of interest, reserve policy, and related-party transactions.
- Internal controls: Assessing how donations, grants, and expenses are tracked and authorised.
Auditors will issue an Independent Auditor’s Report, highlighting if the financial statements are presented fairly and in accordance with applicable standards.
When Must the Audit Be Completed?
Charities in Singapore are required to submit their annual financial statements and audit report within 6 months of the end of their financial year.
- For example, if your financial year ends on 31 December, your audit and annual report must be submitted to the Commissioner of Charities by 30 June of the following year.
Failure to submit audit reports on time can result in compliance actions or impact the public’s perception of the charity.
What Are the Common Issues Found During Charity Audits?
- Incomplete or missing donor records
- Improper use of restricted funds
- Lack of supporting documentation for expenses
- Weak segregation of duties in financial processes
- Related-party transactions not disclosed
- Lack of board approval for major expenditures
These issues, when highlighted in audit reports, must be addressed by the Board of the charity to maintain transparency and regulatory standing.
Why Choose Koh & Lim Audit PAC for Your Charity or NGO Audit?
At Koh & Lim Audit PAC, we specialise in providing professional and reliable audit services for charities, NGOs, religious organisations, societies, and IPCs in Singapore.
Why clients choose us:
✅ Experienced in Non-Profit Sector Audits
We understand the unique financial reporting and governance standards required of charities and IPCs.
✅ Familiar with Charities Accounting Standards (CAS)
We ensure your statements are prepared and audited according to the right standards, whether CAS or SFRS.
✅ Ethical, Independent, and Transparent
We maintain objectivity while working closely with your team to complete audits on time and on budget.
✅ Responsive and Supportive
We offer practical advice to improve internal controls and help you avoid audit pitfalls in future years.
✅ Fixed, Transparent Pricing
No hidden fees — we offer affordable, fixed-fee packages suitable for charities and NGOs of all sizes.
Our Charity Audit Services Include:
- Statutory audits for charities and IPCs
- Audit of grant and project-specific funds
- Independent reviews (for smaller charities)
- Internal control advisory and governance reviews
- Annual financial reporting support
- Guidance on Charities Accounting Standards (CAS)