By David Charlesworth, Principal.
With the many changes that are occurring with respect to financial reporting for Not for Profit organisations we think it is a timely reminder for everyone to review their process for the preparation and reporting to the Australian Charities and Not-for-profits Commission (ACNC).
Your process should be similar to the steps below:
- Review the size of your organisation as this determines the level of accounting and reporting compliance;
- Review what needs to be submitted to the ACNC based on the size of your organisation;
- Determine the appropriate basis of accounting (cash / accrual) if you are considered to be a small not-for-profit or charity.
- Determine whether an audit/review is required (don’t forget to check your Governing document) – the organisation dependent on size may need no audit at all / a review or an audit.
- Determine the type of financial statements that are to be prepared - special purpose, general purpose - simplified disclosure or full general purpose.
The above steps will assist in your reporting requirements and also in completing the annual information statement. For medium and large organisations, they not only need to lodge the annual information statement but are also required to submit the financial statements with the ACNC.
If you need assistance in preparing the necessary documentation for reporting to the ACNC or are in need of auditors to complete either the review or audit then please don’t hesitate to get in touch with us here at Lee Green.
The information provided in this article is general in nature and does not take into account any person or entity's particular financial situation or needs. Please contact us for advice specific to your circumstances.
This information is current at the time of publication and further updates may have occurred since that date.
