Since its inception, KDF has put into practice procedures and guidelines in order to maximise utilisation of public donations for life-long holistic patient care. A fixed-cost subcontracting system allows for minimal administrative and overhead costs.
TRANSPARENCY & ACCOUNTABILITY
A number of policies have been implemented to ensure transparency of commercial transactions. Funds raised and monies collected are utilised largely for patient treatment, and not for costly overheads and miscellaneous expenditure. Accountability extends to our financial statements that are easily available at our website and upon the request of donors.
COST EFFECTIVENESS & PRE-DETERMINDED COSTS
To exercise absolute cost control and minimise administrative and overhead costs while delivering quality care, KDF subcontracts its dialysis services to Dialysis Management Companies (DMCs) through open tenders. KDF has benefited from subcontracting because the DMCs have to work within a given budget to handle all dialysis treatment, nursing and ancillary staff and the maintenance of equipment. Commercial and accounting records are transparent as costs are pre-determined.
GOOD CORPORATE GOVERNANCE
KDF adheres to the improved regulations for Institutions of Public Character (IPC) provided by the Health Ministry (MOH) for Voluntary Welfare Organisations (VWOs) in Singapore. KDF is in full compliance with the governance evaluation checklist listed on the charity portal (www.charities.gov.sg) by the Ministry of Culture, Community and Youth.
OUTSOURCING & DIALYSIS COST
To ensure cost-effectiveness, our dialysis services are outsourced to the professional service providers through an open tender system. As at 31 March 2017, 36% of our patients do not pay any cash out of their pockets for dialysis treatment. If fact, none of our patients paid more than $600 per month out of their own pockets for their dialysis treatment, which typically costs about $2,000 per month.
RESERVES FUND POLICY
KDF has a reserve policy to provide clarity in the Foundation's management of its reserves. The policy applies to that part of the Foundation's income funds that are freely available for its operating purposes. It excludes endowment funds, restricted funds and designated funds.
As at 31 March 2017, assuming KDF receives no income from the government, patients and donors, the accumulated surplus would enable KDF to sustain the cost base of the FY16/17 for 3.6 years. As dialysis treatment for end stage renal diseases and research is a long term commitment, it is the intention of the Board of Directors to ensure that the level of reserves is adequate to support KDF's programmes for its needy patients during their lifetime and fulfil its commitment to research.
CONFLICT OF INTEREST
KDF has policies in place to prevent and address actual and perceived conflict of interest that will affect the integrity, fairness and accountability of the Foundation. These policies are clearly stated in the Foundation's Code of Governance and Conduct and are adopted by the Foundation, Board members and staff. In situations, where a potential conflict of interest should arise, the board will evaluate the situation and the affected party will abstain from voting on the transaction. For the financial year, the Chairman, Board members and staff have declared that they do not have any personal interest in the business transactions or contracts that KDF has entered into.
FRAUD DETECTION AND REPORTING
KDF maintains a zero tolerance policy towards fraud. This policy not only applies to all the Foundation's Board, Committee members and staff but also applies to the Foundation's vendors, suppliers and partners to the extend that the Foundation's resources or reputation may be involved or affected.
INTERNAL CONTROLS AND AUDITS
Since 2006, the Board has commissioned an independent third party to conduct annual internal audits to ensure that the operations of the Foundation is in compliance with the established guidelines and regulations set by the Commissioner of Charities, Sector Administrator and the relevant government bodies and adopts best practices recommended for the charity sector. For the FY 2017/18, Shared Services for Charities Limited has been appointed as KDF's independent internal auditor to review the processes and controls within the Foundation.