Best Practice in Management

Non-governmental Organisations (NGOs) receiving Government subventions are responsible for ensuring the best use of public funds and providing quality service, and are accountable to the Social Welfare Department (SWD) as well as the public. Good coporate governance can improve performance and ensure that management fulfills its responsibilities. The following guidelines provide a convenient and user-friendly reference for those responsible for managing and overseeing NGOs operating subvented welfare services on implementing good corporate governance practices.

Internal Control

NGOs operating subvented services should properly supervise and monitor the performance of their units, while setting up effective internal control mechanisms in order to detect deficiency and rectify timely, to ensure that the services comply with the relevant requirements. Besides monitoring the daily operation of service units, NGOs should conduct self-assessments regularly and submit assessment reports to the Social Welfare Department in accordance with the relevant requirements.

Reporting of Significant Incidents (NGO)

NGOs are required to submit the Significant Incident Report to SWD as soon as possible when there are significant incidents involving public interest, such as governance crisis and financial management problems.

Reporting of Special Incidents (Service Unit)

NGOs are required to submit the Special Incident report to SWD special incidents in respect of subvented service unit(s) in not more than three calendar days (including public holidays) following the incidents.