2/22/2014

Self funding organisations no need to submit financial statements



The PA has explained why financial statements of grassroots organizations under its charged were not included in PA’s audited accounts. From 2008 to 2011, the auditors KPMG and PricewaterhouseCoopers had submitted ‘adverse opinions’ on PA’s accounts for ‘the exclusion of the grassroots organisation’s statements that was not in compliance with the Statutory Board Financial Reporting Standards’.


The issue was raised in Parliament by Low Thia Khiang in 2008 ‘and it had explained then its view that the funds in those accounts belonged to the grassroots organizations, which were operationally self funding’. So, does this means that it was satisfactorily explained and all was in order? Apparently it was so and the matter closed.


What does this mean? Self funding organizations need not submit financial statements for auditing? No need even if it is a requirement and financial reporting standards for statutory boards? If this is the case, can one conclude that any non govt self funding organizations, associations, clans, society etc also don’t have to do so? This will include the mega churches that are obviously self funding, the clans association or societies as well, tiok boh?


I am no accounting man, no finance experts so not in a position to make any meaningful comments or conclusions. Anyone could enlighten on this matter? Maybe must ask Leong Sze Hian for advice.


What do you think?

Kopi level - Green

10 comments:

Anonymous said...

Singapore major challenges is;

1 Low Gini co efficiency

2 Low birthrate

3 Unbalance standard of Living or dropping standard of living for the lower half of the population

Singapore advantages;

1 15 millions tourists arrivals per year

2 One of the world busiest port

3 More then $300 billions reserve

How to use the locked up CPF, to fund those entrepreneur investment and those persons able to get a better returns, instead of locking up the CPF for life?

If is important to optimized the used of CPF so that new entrepreneur can capitalized on it and get funding?

Used the CPF to loan to aspiring business with low interest?

Refinance their HDB?

More and many ways, business can get funding to grow their business?

Make easy for entrepreneur to get funding to expand their business and oversea

To be more efficient, to reduce wastage

To make better and higher quality product through better design

How to improve the standard of living and pay of the low wage workers like construction workers and cleaners through automation and innovations, through reduce using foreigners, except higher qualify workers that can operate machinery and productivity?

Singapore got to face it problems now and not to get it worse like the past mistake of letting in too many foreign workers as Tan Cheng Bock said?

Important to make it easy for business and entrepreneur to easier to get funding and cut red tapes, more encouragement from the medias?

To adopt some of the successful system of the Nordic which grow the SME to successful multi national companies?

To merge smaller companies so they can get economy of scale and synergies?

Anonymous said...

$500 million GROs have no financial audits?

Can anyone believe that?

Anonymous said...

When i am in power i say what means what. You dare to question. Off you go to the dungeon says the king. Haha

Anonymous said...

Ask Dr Ernest Kan loh

Anonymous said...

What is the legal definition of self funding organization ... since they are given such legal exemptions?

Is a terrorist organization like Al-Qaeda also a self funding organization?
Is a Ponzi scheme a self funding organization?

In an age of terrorism and money laundering, isn't it important to know where the money comes from ?
And where the money is going to?

Anonymous said...

If PA's are self funding, why is there a need for the Government to subsidise them to the tune of close to, I understand, $500 million? Correct me if I am wrong. That is public money and need to be accounted for.

patriot said...

There are good governance
and there are poor or even lousy
governance.
But never perfect or ideal governance.
Sinkies will be very lucky if they do not get exploited and sold out by traitors and betrayors.

patriot

Anonymous said...

With all the cases involving top civil servants, law enforcers, religious leaders all dipping their fingers into the cookie jar, there may be much more than meets the eye inside PA.

In Parliament, they always sweep aside any sensitive questions by drowning the opposition voices with overwhelming numbers, and presume this will silence the questioning party and sweep the issues under the carpet. This cannot be the way to go. We need more opposition MPs.

Matilah_Singapura said...

Simple lah redbean:

PA ===> Stat board. Govt funded, therefore they have t comply

Grass roots ==> As far as I know, like religious organisations, they don't take govt money, even though they are under the "umbrella" of PA. They fund themselves and have volunteers to staff. Take for e.g. Community Clubs -- they have cafes, organise events and have educational classes, which they charge for.

HOWEVER, if grassroots take govt money via PA then they are definitely obliged to make themselves accountable to the TAXPAYERS.

If that is the case, then no pan chan. They have to be beaten with every heavy legal stick until they comply, and if people have to GO TO JAIL, so be it.

Perhaps it is time for CAD to enter the picture, and probe to see whether there's "inappropriate" practices.

Anonymous said...

The wonderful part is that when they tried to explain away the issue, they contradict themselves in the process.

First, they argued that grassroot organisations under PA are self funding and therefore their accounts do not have to be consolidated under PA. If that is the case, why are they now saying that henceforth they will consolidate their accounts under PA. Isn't that openly admitting that they were doing wrong in the past ten years? Shooting their own feet again?