The Institute of Singapore Chartered Accountants (ISCA) will launch a new program in collaboration with the National Council of Social Service (NCSS) and the office of the Commissioner of Charities (COC) to assist charities in digitizing their accounting and finance processes for better governance and strengthening their accounting capabilities. By reviewing and improving the charities' processes and controls to foster better risk management and increase stakeholder confidence, the new program seeks to hasten the digital transformation of more than 2,000 charities in Singapore, particularly smaller charities with limited resources. It also supports the implementation of accounting software to strengthen documentation practices and improve the financial operations of charities for better accountability and governance.
"Many of us have benefited from society, whether professionally or personally," said Mr. Teo Ser Luck, president of ISCA. At ISCA, we wish to contribute to aiding people in need and giving back to the community. With our professional expertise and talents, we can influence the charity sector. Our members have the chance to have a constructive and significant effect here.
Before being scaled up for wider use in early 2024, the new initiative will be piloted with four charity. Four accounting firms have been selected by ISCA for the program: Helmi Talib Accounting & Advisory, Nexia Singapore, Singapore Corporate Services, and Unity Assurance. These companies will provide their services without charge. Through their corporate giving and skill-based volunteering, the businesses they will help charities digitalise their accounting systems and strengthen charities’ governance and controls. Interested charities can write to ISCA at CharityAccounting@isca.org.sg.
An online accounting software provider called Xero will provide a significantly priced accounting software bundle as part of this new initiative to assist charities with their digital transformation. Charities who sign up for the program will receive lifetime membership discounts of 25% and a 50 percent reduction in ordinary subscription costs for the first three years.
The ISCA Charity Accounting Committee, made up of business leaders from the accounting profession, is in charge of the new initiative. Through advice and the exchange of best practices, the committee will also assist in the adoption of accounting standards for charitable organizations. "In our discussions with the charities, we identified two major pain points that smaller charities face when implementing digital accounting practices: the cost and the time commitment," stated Professor Ang Hak Seng, Chairman of the ISCA Charity Accounting Committee The expense of accounting software and the move from manual to digital accounting are two key challenges that smaller charities encounter when implementing digital accounting practices, according to our interactions with the organizations. In order to provide software to charity at a discount, ISCA collaborated with a software provider on the former. For the latter, consultants who work for free or at a reduced rate will be assigned to each charity to help them along the way. Additionally, standard operational procedures will be developed to guarantee continuation even after the consultant leaves. As these best practices are disseminated throughout the industry, more charities will be able to quickly embrace digital accounting.
"This collaboration is part of our efforts to support charities in increasing their capabilities to better serve the community and to strengthen public trust in the sector", said Mr. Desmond Chin, Commissioner of Charities. Charities are urged to make use of the ISCA program to improve their internal accounting controls and processes to promote accountability and transparency. The new initiative enhances ISCA's mission to mobilize its stakeholders to increase aid to people in need. From 1 August 2023 to 31 July 2026, ISCA will give $5 for each new subscription to its e-learning platform, ISCAccountify, in support of Community Chest's Change for Charity project.
Ms Tan Li San, Chief Executive Officer, National Council of Social Service, said, “We are grateful to ISCA for taking the lead in encouraging its members to volunteer expertise to strengthen the charities’ finance and accounting practices, and to adopt Change for Charity. We hope to partner more professional associations to enable businesses to tap on their competencies and volunteer their skills to uplift social service agencies, so that they can better serve Singaporeans”. In addition, NCSS provides funding support to NCSS members as well as exempt and registered Charities and Institutions of a Public Character (IPCs) for accounting systems under Tech-And-GO! schemes”. Corporations, social service agencies and charities who are keen in engaging volunteers to augment resourcing needs may find out more about the Skills-Based Volunteerism Toolkit for Organisational Development at https://go.gov.sg/ncss-
