Duty to keep accounting records
Open ↗11.—(1) Unless otherwise excepted by regulations made under this Act, the governing board members of a charity must ensure that accounting records are kept in respect of the charity which are sufficient to show and explain all the charity’s transactions, and which —(a)
disclose at any time, with reasonable accuracy, the financial position of the charity at that time; and
(b)
enable the governing board members to ensure that, where any financial statements are prepared by them under regulations made under section 12, those financial statements comply with the requirements of those regulations.[34/2010; 2/2018]
(2) The accounting records must, in particular, contain —(a)
entries showing from day to day all sums of money received and expended by the charity, and the matters in respect of which the receipt and expenditure takes place; and
(b)
a record of the assets and liabilities of the charity.
(3) Subject to subsection (4), the governing board members of a charity must preserve any accounting records made for the purposes of this section in respect of the charity for at least 5 years after the end of the financial year of the charity in which they are made.[34/2010; 2/2018]
(4) Where a charity ceases to exist before the end of the minimum period in subsection (3) for preserving of accounting records in respect of the charity —(a)
the last governing board members of the charity; or
(b)
any one or more of the last governing board members of the charity, as may be agreed by the last governing board members,
must preserve the accounting records to the end of that period, unless the Commissioner allows the accounting records to be earlier destroyed or otherwise disposed of.
[2/2018]
(5) Subsection (4) also applies to a charity that ceases to exist before 1 April 2018, if the minimum period in subsection (3) as it applies to any accounting record of the charity has not ended on that date.[12
[2/2018]
Financial statements
Open ↗12.—(1) The Minister may make regulations relating to the financial reporting requirements for charities, including provisions —(a)
allowing the governing board members of specified classes of charities to prepare a receipts and payments account and a statement of assets and liabilities instead of financial statements in respect of any financial year of the charity;
(b)
prescribing requirements as to the form and contents of accounts and statements of charities;
(c)
requiring the accounts and statements of specified classes of charities to be in compliance with all or any of the following:(i)
specified accounting standards that are made or formulated by the Accounting Standards Committee under Part 3 of the Accounting Standards Act 2007;[Act 36 of 2022 wef 01/04/2023]
(ii)
other accounting standards or requirements specified in the regulations;
(d)
providing for relief from the requirements of such accounting standards applicable to charities;
(e)
determining the financial years of a charity for the purposes of this Act;
(f)
modifying the application of any provisions in the Companies Act 1967 as to the form and content of a company’s accounts or consolidated accounts being in compliance with the Accounting Standards (as defined in the Companies Act 1967) in respect of a company that is registered as a charity or approved as an institution of a public character under this Act; or
(g)
providing that any person who is guilty of an offence under any regulations made under paragraph (c) in respect of a charity which is registered as a company under the Companies Act 1967 shall be liable on conviction to the same penalty as that provided under section 204(1) or (3)(a) (as the case may be) of that Act.[34/2010; 2/2018]
(2) Subject to subsection (3), the governing board members of a charity must preserve any financial statement or other accounts and statements prepared by them for the purposes of regulations made under this section, for at least 5 years after the end of the financial year to which the financial statement or accounts and statements (as the case may be) relate.[2/2018]
(3) Where a charity ceases to exist before the end of the minimum period in subsection (2) for preserving financial statements or other accounts and statements in respect of the charity —(a)
the last governing board members of the charity; or
(b)
any one or more of the last governing board members of the charity, as may be agreed by the last governing board members,
must preserve the financial statements or other accounts and statements to the end of that period, unless the Commissioner allows the financial statements or other accounts and statements (as the case may be) to be earlier destroyed or otherwise disposed of.
[2/2018]
(4) Subsection (3) also applies to a charity that ceases to exist before 1 April 2018, if the minimum period in subsection (2) as it applies to any financial statement or other accounts and statements of the charity has not ended on that date.[13
[2/2018]
Annual audit or examination of charity accounts
Open ↗13.—(1) The Minister may by regulations make provision —(a)
requiring the accounts of charities to be audited or examined and specify the circumstances in which such audits or examinations must be carried out by a public accountant, an independent qualified accountant or an independent person;
(b)
with respect to the duties of an auditor or independent examiner carrying out an audit or examination for the purposes of this section;
(c)
conferring on the auditor or independent examiner a right of access with respect to books, documents and other records (however kept) which relate to the charity concerned;
(d)
entitling the auditor or independent examiner to require, in the case of a charity, information and explanations from past or present governing board members or trustees for the charity, or from past or present officers, employees or auditors of the charity; and
(e)
enabling the Commissioner, in prescribed circumstances, to dispense with any of the requirements prescribed under paragraph (a) in the case of a particular charity or in the case of any particular financial year of a charity.[34/2010]
(2) Where it appears to the Commissioner —(a)
that any requirement under this section for the accounts of a charity to be audited or examined has not been complied with in relation to a financial year of a charity within 10 months from the end of that year; or
(b)
that it would be desirable for the accounts of a particular charity for any year to be audited by a public accountant although the regulations made under this Act do not so require,
the Commissioner may by order require the accounts of the charity for that year to be audited by a person appointed by the Commissioner.
[34/2010]
(3) The expenses of any audit carried out by a person appointed by the Commissioner under subsection (2), including the person’s remuneration, must be paid —(a)
by the governing board members of the charity concerned who shall be personally liable, jointly and severally, for those expenses; or
(b)
to the extent that it appears to the Commissioner not to be practical to pay those expenses in accordance with paragraph (a), from the funds of the charity.[34/2010]
(4) The Commissioner may give any directions that he or she may think appropriate with respect to the carrying out of an examination required by regulations made under this Act, and any such directions may either be of general application or apply to a particular charity only.[34/2010]
(5) If any person fails to provide an auditor or independent examiner any facility to which the auditor or independent auditor is entitled by virtue of regulations made under subsection (1)(c) or (d), without affecting any regulations made under section 57(4) for such failure, the Commissioner may by order give to that person or to the governing board members for the time being of the charity concerned, such directions as the Commissioner thinks appropriate for securing that the default is made good.[34/2010; 2/2018]
(6) Section 391 of the Companies Act 1967 has effect in relation to an auditor or independent examiner appointed by a charity pursuant to this section as it has effect in relation to a person employed as auditor by a company within the meaning of that Act.[14
[34/2010]
Annual reports
Open ↗14.—(1) Unless otherwise excepted by regulations made under this Act, the governing board members of a charity must prepare in respect of each financial year of the charity an annual report containing —(a)
a prescribed report by the governing board members on the activities of the charity during that year; and
(b)
any other information relating to the charity or to its governing board members or officers that may be prescribed by regulations made under this Act.[34/2010]
(2) The annual report required to be prepared under this section in respect of any financial year of a charity that is a registered charity or an exempt charity, must be transmitted to the Commissioner by the governing board members —(a)
within 6 months from the end of that year; or
(b)
within such longer period as the Commissioner may for any special reason allow in the case of that report.[34/2010; 2/2018]
(3) Subject to subsection (4), every annual report of a registered charity or an exempt charity must have attached to it the financial statements or account and statement prepared for the financial year in question pursuant to section 12(1), together with —(a)
where the accounts of the charity for that year have been audited under section 13, a copy of the report made by the auditor on the financial statements or account and statement, as the case may be; or
(b)
where the accounts of the charity for that year have been examined under section 13, a copy of the report made by the independent examiner in respect of the examination carried out by the independent examiner under that section.[34/2010; 2/2018]
(4) Subsection (3) does not apply to a charity which is a company, and any annual report transmitted by the governing board members of such a charity under subsection (2) must have attached to it a copy of the charity’s annual accounts prepared for the financial year in question under Part 6 of the Companies Act 1967, together with a copy of the auditor’s report on those accounts.[34/2010]
(5) Any annual report transmitted to the Commissioner under subsection (2), together with the documents attached to it, must be kept by the Commissioner for such period as he or she may think fit.
(6) Subject to subsection (7), the governing board members of a charity must preserve every annual report prepared under this section for a financial year that ends on or after 1 April 2018 in respect of the charity, for at least 5 years after the end of the financial year of the charity to which the report relates.[2/2018]
(7) Where a charity ceases to exist before the end of the minimum period in subsection (6) for preserving annual reports in respect of the charity —(a)
the last governing board members of the charity; or
(b)
any one or more of the last governing board members of the charity, as may be agreed by the last governing board members,
must preserve the annual reports to the end of that period, unless the Commissioner allows the annual reports to be earlier destroyed or otherwise disposed of.
[2/2018]
(8) Subsection (7) also applies to a charity that ceases to exist before 1 April 2018, if the minimum period in subsection (6) as it applies to any annual report of the charity has not ended on that date.[16
[2/2018]
Public inspection of annual reports, etc.
Open ↗15.—(1) Any annual report or other document kept by the Commissioner pursuant to section 14(5) must be open to public inspection at all reasonable times —(a)
during the period for which it is so kept; or
(b)
if the Commissioner so determines, during a shorter period that he or she may specify.
(2) Where any interested person —(a)
requests the governing board members of a charity in writing to provide the interested person with a copy of the charity’s most recent accounts; and
(b)
pays the governing board members such reasonable fee (if any) as they may require in respect of the costs of complying with the request,
those governing board members must comply with the request within the period of 2 months beginning with the date on which the request is made.
[34/2010]
(3) In subsection (2), the reference to a charity’s most recent accounts is —(a)
a reference to the financial statements or account and statement prepared pursuant to section 12(1) in respect of the last financial year of the charity the accounts for which have been audited or examined under section 13; and
(b)
in the case of a charity which is a company, a reference to the annual accounts of the company most recently audited under Part 6 of the Companies Act 1967.[17
[34/2010; 2/2018]
Offences
Open ↗16. Any person who, without reasonable excuse, is in default in relation to any requirement imposed by section 11(3) or (4), 12(2) or (3), 14(2), (6) or (7) or 15(2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $10,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $100 for every day or part of a day during which the offence continues after conviction.[18
[2/2018]
Source: Singapore Statutes Online (Attorney-General's Chambers), © Government of Singapore.
