KPMG Audit Reveals $76,000 in Losses at Singapore Red Cross
SINGAPORE – An audit report disclosed by the global accounting firm KPMG has shown $76,000 in losses at Singapore Red Cross due to misappropriation of funds allegedly perpetrated by the organization’s administrative assistant from January 19, 2010 to November 30 2010.
KPMG’s audit report figure fell 15 percent from the initial investigation of Singapore Red Cross reporting $90,000 in losses. The administrative assistant convicted for the crime joined the organization’s finance department in January 2, 2010, but was terminated on December 29, 2010 following the discovery of the misappropriation of funds which KPMG submitted to Singapore’s Commissioner of Charities.
KPMG noted in its report that some inadequacies in Singapore Red Cross may have caused the misappropriation. The accounting firm said unapproved delegation of duties to certain individuals, oversight in the supervisory levels, and disregard to standard operating procedures were likely the reasons for the misappropriation of funds.
KPMG has also pointed to mishandling of money and improper documentation of donations received from different individuals.
The Singapore Red Cross did not give full details of its ongoing investigation with police officials, but said appropriate actions have already been implemented to punish those involved in the misappropriation of funds.
In addition to the administrative assistant, the organization implicated three supervisors in the crime within the finance department and has since frozen their salaries. The one who was the suspect’s immediate supervisor would not be sacked, but instead be demoted to another position.
Singapore Red Cross already resumed with its fund raising that has been temporarily delayed during the height of the investigation. It has also adopted new measures to avoid any misappropriation of funds within the organization in the future.
The organization said any donations will now be received by two staff, one from the finance department who would immediately issue a receipt to donors while the other is a senior manager whose task is to check from time to time total amounts collected, cross-checking it against the receipt books after working hours.
The organization’s latest disclosure of donations revealed a total of $5 million from 2008 to 2009.