THE CHALLENGE 

A voluntary welfare organisation (VWO) that provides residential care, eldercare and medical services faced a huge challenge in meeting financial reporting requirements. With inadequate knowledge of these requirements, its accounting staff spent much time extracting and processing information manually, which delayed financial reporting to the relevant authorities. Grant applications could not be processed due to a lack of supporting documents and the improper classification of transactions.

Payment administration was also a nightmare as double or wrong payments were made to suppliers and authorised volunteers were not always available to approve payments.

HOW RSM HELPED

RSM assessed the client’s pain points and assisted in the following areas.

AccountingPayment administration
  • Review chart of accounts and ensure that financial statements comply with reporting requirements
  • Design new chart of accounts to ease extraction of financial information by facility and programme for financial reporting
  • Allocate cost for each programme, retrieve supporting documents and facilitate audits for grant applications
  • Arrange annual pre-audit meeting to set timeline for submission of financial statements to auditors and relevant authorities
  • Provide financial consultations
  • Create payment schedules
  • Liaise with approvers and create chat group to facilitate payment approval
  • Implement solution that allows payments to be made or received automatically through GIRO or internet banking

RESULTS

The client realised several benefits:

  • Peace of mind over timely and compliant financial reporting
  • Timely and accurate payments to suppliers
  • Focus on strategic activities
  • Quick extraction of financial information for internal reporting and budgeting
  • Financial insights for key non-accounting stakeholders

VWOs looking to reduce costs, enhance productivity and uncover insights for better financial management may similarly benefit from our accounting outsourcing experience with this sector.

To find out more and how our Not-for-Profit Practice team can assist you, please reach out to our specialists.

Woo E-Sah, Partner & Head of Assurance
Woo E-Sah
Partner & Head of Assurance
Sovann Giang
Senior Director