Corporate Governance

A good board consists of individuals who can contribute critically needed skills, experience, time, and other resources to the organisation. Henceforth, the Board proactively plans for the development, succession, and diversity in the composition of the Board. It has a well-conceived plan to identify and recruit the most suitable people to serve on the board. LCSS Board has an appropriate mix of core competencies and collective expertise among its Board members.

Board Selection and Recruitment
In selecting a suitable candidate to serve as Board member, nomination for the prospective individual is put forth by Board members to the Nomination Committee.  The Nomination Committee assesses the candidate with reference to an LCSS selection criteria list.  Skillsets and experience useful and related to LCSS’s services and operation and how the individual can contribute to the diversity of the Board are carefully considered.  The Nominating Committee then recommends to the Board in approving the selected candidate for nomination and appointment.

Board re-nomination and re-appointment
The board conducts re-nomination and re-appointment of Board members every two years. Assessment of whether the board member can continue to contribute effectively, demonstrate commitment to the role and stay relevant to LCSS’s vision and mission are key considerations for re-nomination and re-appointment.

LCSS abides by the terms and conditions listed in our Constitution and in adherence to the Charity Code of Governance. All members of the Board shall hold office for a term of two years upon election and shall be eligible for re-election with the exception of the Treasurer and Assistant Treasurer, whose maximum term limit is four consecutive years.

Board Succession
In planning for succession, the Chairman and the CEO in particular take into account the challenges and opportunities faced by LCSS and consider skills and expertise which are therefore needed on the future-Board.  The Nominating Committee conducts periodical reviews of the succession plan.

Disclosure of Board Members’ Tenure
In the event the Board member serves for more than ten consecutive years, LCSS will disclose in its Annual Report the reasons for retaining the Board member accordingly.

LCSS’s Mr Nicholas Goh and two other Board members, Mr Seow Kiat Wang, Dr Gilbert Tan, have served more than ten consecutive years on the Board. The Chairman remained in playing a key role in leading the Board, and together with Mr Seow Kiat Wang and Dr Gilbert Tan, they remained on the Board to guide the board renewal process, as well as to ensure that LCSS continues to attain and maintain the highest standards of corporate governance.

LCSS has two spiritual advisors, Dr Tan Kok Beng (founder of LCSS) and Mr Goh Kng Yan. They were previous Board members and as spiritual advisors, they provide pastoral care and support to LCSS staff and leaders.

Together with the CEO, the Board orientates new Board member to their responsibilities so that new Board members are familiar with the work and Board functions of LCSS at the start of their term of service. The orientation programme is initiated by the CEO, including an overview of LCSS programmes and a tour of the facilities across LCSS.

The Board conducted a self-evaluation exercise through a customised Board Effectiveness Questionnaire to measure its performance in 2020. The areas identified for development were reviewed and addressed over a board retreat in the same year.

Going forward, the Nomination Committee will annually evaluate the effectiveness of the Board and identify areas of improvement.

In January 2023, an external consultant was engaged to lead the Board in another board retreat session. The consultant brought the Board to revisit LCSS’s vision and mission, providing guidance to the Board on their roles in helping LCSS to thrive forward as LCSS looks to grow and anchor itself stronger, aligning to LCSS’s strategic goals towards reaching its vision and mission.

The Board has approved documented Code of Conduct & Ethics policy for all Board members, as well as handbooks for staff and volunteers. The Code of Conduct & Ethics is aligned to LCSS values in achieving its vision and mission.

The Board and key management staff:

• Serve LCSS wholly and not any particular interest group or constituency.
• Avoid potential conflict of interest and disclose potential conflict of interests (if any) to the Executive Board Committee.
• Abstain from discussion and voting on matters where there can be potential conflict of interest and let the remaining of the Executive Committee make the final decision.
• Do not accept (or offer) personal favors or gifts from/to any interest group, constituency, or LCSS staff, in performing their Board Member duties.

 All Board Members are independent and do not receive any remuneration for their services to LCSS.

No staff of LCSS sits on the Board to avoid conflict of interests and doubts on the independence of all Board decisions.

In addition, all Board members and key executive management staff are required to declare on an annual basis that they do not have any personal or private business, or associates that might be in a conflicting position to their functions or employment with LCSS.

Procedures for Key Financial Matters

The Board and Management take responsibility in ensuring LCSS has an effective system of internal controls to safeguard LCSS stakeholders’ interests and LCSS’s assets.

The Finance and Administrative departments ensure that all operations comply with the policies and procedures set out in the Internal Financial Policies and Procedures Manual. The key areas of the documented procedures for financial matters of LCSS are:

• Procurement procedures and controls
• Receipts, payment procedures and controls
• Delegation of authority and limits of approval

As part of internal controls, all purchases of more than $10,000 require three quotations to be obtained before approval of purchase. In any case of waiver of this requirement, documented reasons and relevant support documents must be obtained prior to approval by the Treasurer and Chairman.

Reviews are also conducted regularly to ensure the effective functioning of LCSS internal controls and processes, ensuring any key risks are being identified at the same time.

Annual Budget
The annual budget is prepared by the Finance department with inputs from the different departments, and reviewed by the Treasurers before submission to the Board for approval before the new financial year kicks in. Monthly performance financial reviews are conducted where the Finance Department discussed the Financial Statements with the CEO comparing actual financial results with analysis and explanations against the annual budget and same period the previous year.  Reasons for any discrepancies, unusual items and transactions are explained before presentation to the Board for review.

Cashflow Management
Cashflow forecasts are prepared quarterly to cater to the financial needs of LCSS more realistically and gives management insights into future cash planning. Cash inflows and outflows are compared against regularly updated forecasts. Cash deficits or surpluses are closely monitored to ensure there are sufficient funds for operation needs.

Financial Performance Reviews
Quarterly performance financial reviews are conducted where the Finance Department discussed the main Financial Statements with the CEO comparing actual financial results with analysis against the annual budget and same period the previous year.  Reasons for any discrepancies and unusual items and transactions are explained before presentation to the Board for review.

Investment Policy
The Board takes a conservative approach on the investments of LCSS, including low-risk strategies that generate returns while preserving reserves and capital. The Board, along with the Finance and Investment sub-committee, determines the investment limit and approves investments in financial instruments such as fixed deposits, unit trusts, bonds and equities according to the terms and parameters laid out in LCSS Investment Policy.

Fundraising Practices

LCSS has established guidelines on fundraising. These guidelines are based on the best practices set out by the National Council of Social Services and the Charity Council. We do not disclose donors’ identities or share information on donors without their prior permission. LCSS does not engage in any third-party fundraisers.

The funds raised go towards helping our beneficiaries through our core programmes which focus on intervention work and holistic development in alignment with our vision and mission. All donations received (solicited or unsolicited) are properly accounted for and promptly deposited.

Fundraising Efficiency Ratio
At LCSS, the fundraising efficiency ratio is always kept below 30%, commonly known as the 30/70 rule.

Fundraising Activities
LCSS organizes “Golf for Life” as its primary fundraising event annually. In December 2023, LCSS hosted a Christmas Carnival fundraising event – “Love Came Down at Christmas” to spread God’s love, cheer, and hope to our clients and the community.

Love Came Down @ Christmas (unaudited)
• Gross receipts : $64,762
• Total expenses : $14,520
• Saturday, 2 December 2023
• Radin Mas Community Club

Golf For Life 2023 (unaudited)
• Gross receipts : $242,698.26
• Total expenses : $60,487.27
• Friday, 14 July 2023 (Replay on 18 August 2023)
• SICC Country Club

Golf For Life 2022
• Gross receipts : $246,720
• Total expenses : $50,291
• Friday, 30 September 2022
• Orchid Country Club

Golf For Life 2020 (held in 2021 due to the COVID-19 situation in Yr 2020)
• Gross receipts : $192,388
• Total expenses : $24,853
• Session 1 : Friday, 17 September 2021
• Session 2 : Friday, 24 September 2021
• Session 3 : Friday, 22 October 2021
• Orchid Country Club

Golf For Life 2019
• Gross receipts : $237,353
• Total expenses : $36,035
• Wednesday, 31 July 2019
• Warren Country Club

Golf For Life 2018
• Gross receipts : $232,100
• Total expenses : $38,653
• Thursday, 2 August 2018
• Warren Country Club

Golf For Life 2017
• Gross receipts : $258,484
• Total expenses : $38,337
• Friday, 4 August 2017
• Warren Country Club

Golf For Life 2016
• Gross receipts : $309,824
• Total expenses : $55,424
• Friday, 12 August 2016
• SICC Country Club

The Board approves the documented human resource policies for staff. LCSS recognises that it is vital to have trained and experienced people with the passion to achieve LCSS’ organisational goals onboard.

Appraisals were done with staff to discuss of expectations, how performance is measured and rewarded and these appraisal sessions also provides a platform in identifying and addressing gaps, if any. All reviews are conducted in an open and transparent manner, encouraging a two-way discussion and feedback.

The HR Committee reviews, monitors and makes recommendations to the Board on human resource strategies and enact new policies whenever necessary.

Disclosure & Transparency

• No Board members receive any remuneration for their board services.
• No staff is involved in setting his or her own remuneration.
• No paid staff are close members of the family of the CEO or Board members, who have received remuneration exceeding S$50,000 during the financial
• LCSS does not make any loans to any employees, management, board members, related parties and third parties.
• LCSS does not make any nor provide any sponsorship to any charities.

Key Management Responsibility
The Chief Executive Officer (CEO), appointed by the Board, heads the organisation with the support of a Senior Management Team comprising of three deputy directors and a management team comprising of managers in charge of their respective programmes/corporate support areas. The Senior Management Team look ahead and make strategic plans whereas the managers oversee the day-to-day management and operations of LCSS.

Key Management Selection, Assessment and Remuneration

The CEO of LCSS is selected and assessed by the Board based on the Board’s expectations on the candidate’s qualifications and experience.

The Board:
• Appoints the CEO
• Determines terms and reference of the appointment
• Endorses the remuneration and benefits package offered to the CEO

Periodic reviews are conducted by the Board with the CEO. During the annual performance appraisal, the CEO is appraised on his work performance by the Chairman, in consultation with other Board members.

The CEO does not serve as a Board member to ensure independence of the Board and in consideration of conflict of interests implications.  According to LCSS Constitution, he does not hold a voting right in any proceedings of LCSS.

Public Communications Policy
In the context of good governance, all feedback, complaints and grievances by the public, donors, volunteers and clients are addressed by the CEO. The CEO responds immediately (within 24 hours) or consults the Board on the appropriate response, depending on the nature and complexity of the complaint.  The turnaround time for LCSS to decide on the appropriate action to be taken and to communicate to the complainant in writing is 1 week upon receipt of complaint. A log is maintained by LCSS for all feedback, complaints and grievances received. The log documents important information such as the date of complaint, the nature of complaint and the follow-up actions taken.

PDPA Policy

LCSS is committed to complying with the Personal Data Protection Act 2012 to safeguard against any misuse of data and to ensure data privacy for all our stakeholders – sponsors, donors, partners, volunteers, staff and beneficiaries. Data is used only for the purposes disclosed unless otherwise permitted under the law.

LCSS respects our stakeholders of their rights to be treated courteously and fairly in terms of data protection. Personal information given in good faith to LCSS is used to maintain or engage relationships between the stakeholders and LCSS only. It is deemed that stakeholders have given consent to LCSS for the use of their personal information for donation-related and communication purposes unless they choose to state otherwise by informing us via our email: lcss@life-community.org

You may find our PDPA policy here : LCSS PDPA Policy

The Finance & Investment Committee regularly review the amount of reserves that are required to ensure that they are adequate to fulfill LCSS’s continuing obligations.

LCSS Reserves position:

Reserves Ratio
LCSS has a reserves ratio of 1.6 for FY22/23.

Restricted Funds Policy
LCSS uses restricted funds according to the respective donors and funders’ intend for our programmes. Should an excess from the funding result, LCSS communicates with the respective donors and funders on planned usage of the unutilized balance in future periods, if allowed.

The Board oversees the risk management of LCSS, particularly the Audit Committee. The Board has established policies and guidelines for financial limits, internal control systems and processes, corporate procedures and work plans to achieve LCSS’s strategic objectives. The Board and the CEO review the policies, guidelines, plans, internal control systems and processes to identify potential risks, determine level of risk tolerance, and develop action plans for key risks to be addressed and reviewed on an ongoing basis. Areas of review include financial, governance, strategic issues, work plans, policies, operational, public communications, human resource, data and information technology risks. The CEO, staff, even volunteers are responsible for carrying out daily operations in accordance with the risk management policies, guidelines and strategies to foster a risk-aware culture in LCSS.

Business Continuity Plan 

LCSS has Business Continuity Plans (BCP) in place to safeguard the interests of our beneficiaries and stakeholders. These BCP plans help mitigate losses and ensure the ongoing of our operations in providing the essential services, programmes and corporate practices when disasters or unforeseen situations strike LCSS.

All staff are informed of these plans and all persons involved in the delivery of services are fully aware of their roles and responsibilities in ensuring business continuity in case of any disruptions in our service.

Purpose and Scope

Life Community Services Society (LCSS) is committed to a high standard of transparency, integrity, compliance and accountability.  The whistle-blowing policy aims to provide a means through which employees or other stakeholders could, in good faith, report any activity that infringes on the organisation’s code of conduct or violates the law so that the organisation may take the relevant action.

This policy applies to all employees and clients, as well as to external stakeholders of LCSS, such as volunteers, donors, and the general public.

Concerns

LCSS’ Whistle-blowing Policy provides an avenue for anyone to report in confidence and without fear of retaliation or unfair treatment, any concerns about suspected misconduct or wrongdoing including, but not limited to:

• Unethical and improper practices or alleged misconduct in matters of financial reporting, internal controls or other related matters.
• Impropriety, corruption and bribery, acts of fraud or suspected fraud, theft and misuse of LCSS’ assets or resources.
• Supplying false or misleading information or withholding material information to the Board or relevant reporting authorities.
• Intimidation, discrimination or harassment of employees and external parties during the course of work.
• Breach of the organisation’s policies or regulations.
• Unlawful activities

Whistle-blowers’ Protection and Confidentiality

The identity of the whistle-blower shall be treated with the strictest confidence. Nonetheless, the whistle-blower must be prepared to make his/her identity known to the receiver of the complaint/concern.

Every effort will be made to ensure all communications under this policy be treated in a confidential manner, except to the extent when:

• LCSS is under a legal obligation to disclose the information provided
• There is a need in order to conduct a complete and fair investigation
• The whistle-blower waives the right to confidentiality

Procedure

If employees have cause to suspect serious concerns to report improper, unethical and inappropriate behaviour, employees could raise such improprieties to their immediate supervisor or the next level of management if the immediate supervisor is involved.

In any case if employee is reluctant to do so, such concerns of suspected violation or misconduct, can be reported directly to the Audit Sub-Committee via email to: whistleblow@life-community.org.

Concerns from external stakeholders can be raised by writing to this same email: whistleblow@life-community.org.

As far as possible, the following information, sufficient for LCSS to do a proper investigation, is to be given:

• Date, time, place and nature of the wrongdoing
• Identity of the parties involved
• Details and/or copies of any relevant documents supporting the report
• Any other relevant information

Investigation and Outcome Report

LCSS or the Audit Sub-Committee, if deemed fit, will assess the concern raised. If there is a prima facie case, a thorough investigation will be conducted. LCSS will then appoint an investigator or an investigation team, where appropriate, depending on the nature, extent, timeline and complexity of the case. However, there may be circumstances where there is insufficient evidence to proceed, especially in the case of anonymous reporting.

All whistle-blowing reports shall be investigated as soon as possible and should be resolved and outcome of investigations and recommended course of action, if any, be reported to the Board within three months of receiving the complaint.

Where appropriate, the complainant may be notified of the outcome.

Monitoring of the Whistle-blowing process

The Audit Sub-Committee regularly review the whistle-blowing policy and procedure.