Reporting to the ACNC
Rita Davis | Senior Accountant
Maggie Man | Senior Accountant
Mark Dowling | Senior Accountant
Susan Quinn | Senior Policy & Education Officer
1 June 2015
Reporting to the ACNC
• Charity size and reporting obligations
• Annual Information Statement
• Annual financial reports
• Review or audit?
• Transitional reporting arrangements
• How we use Annual Information Statement data
• More information
Charity size and reporting obligations
• Must submit Annual Information Statement every year
• Charity size affects your reporting obligations
Small charity
< $250,000
acnc.gov.au/
smallreporting
Medium charity
≥$250,000 but <$1 million
acnc.gov.au/
mediumreporting
Large charity
> $1 million
acnc.gov.au/
largereporting
• Due within 6 months of the end of your charity’s reporting period
• Medium and large charities must submit a financial report
• Medium charity: reviewed or audited
• Large charity: audited
• Record keeping obligations
Annual Information Statement
• Non-financial and financial questions (from 2014)
• Questions relate to your charity’s
– activities
– beneficiaries
– operating locations
– high-level financial information
• Submit in the Charity Portal charity.acnc.gov.au
• Non-submission may result in penalties or revocation
Annual Information Statement
from 2014 reporting period
• Some information from 2013 will be pre-populated
• Financial information is required
– Small charities: 9 questions
– Medium charities: 12 questions
– Large charities: 15 questions
• Governing documents and responsible person
information must be provided (if not already provided)
– ‘Managing your Charity in the Charity Portal’ acnc.gov.au/webinars
Annual Information Statement
Things to look out for
• Question 6: Classification of the size of your charity
• Question 7: Basic religious charities determination
• Question 10: Describing your charity’s activities
• Question 14: Overseas countries where your charity conducted
activities or helped communities
• Section E: Financial information
•
Does the financial information match the financial report?
•
What type of financial report is it?
•
Are you using a transitional reporting provision?
acnc.gov.au/transitionalreporting
Annual financial report
Required from medium and large charities
Comprises of:
1. Financial statements
2. Notes to the financial statements
3. Signed responsible persons’ declaration
Responsible person declaration template www.acnc.gov.au/templates
4. Signed review/audit report to the financial report
Medium charity: reviewed or audited
Large charity: audited
Annual financial report
Types of financial statements
• General purpose financial statements comply with all
relevant accounting standards
• Special purpose financial statements comply with a
minimum of 6 accounting standards in the ACNC
Regulations (section 60.30)
• General purpose or special purpose?
– ACNC guidance acnc.gov.au/financialstatements
• Transitional financial reports
– Transitional financial report templates (medium and large charities)
acnc.gov.au/templates
Annual financial report
Review or audit?
Medium charities: audit or review
Large charities: audit
Review vs audit
• Review provides a lower level of assurance than an audit
• Who can undertake a review or audit?
- Review: registered company auditor, an audit firm with at least one
member of which is a registered company auditor, authorised audit
company or current member of a relevant professional body
- Audit: registered company auditor, an audit firm with at least one
member of which is a registered company auditor or authorised audit
company
Templates
Audit and review report templates acnc.gov.au/templates
Annual financial report
Things to be aware of
1. Full financial reports must be submitted
2. Financial statements should refer to the ACNC Act or, if utilising
state and territory transitional reporting arrangements, the
relevant state or territory legislation
3. Financial statements must be ‘true and fair’ – appropriate
accounting policies should be adopted where relevant and
disclosed
4. Expenses should be presented either by nature or function
Current transitional arrangements
Type of charity
Regulator
Arrangement
Non-government
school
Department of Education and
Training (DET)
2014 and 2015:
ACNC Annual Information Statement but
no financial information.
ACNC accepts DET financial data.
•
acnc.gov.au/nongovschools
Current transitional arrangements
Type of charity
Regulator
Arrangement
Company or registrable
Australian body
Australian Securities and
Investment Commission (ASIC)
2013: ACNC Annual Information Statement and
ASIC annual return. Financial report to ASIC.
2014 onwards: ACNC Annual Information
Statement and financial report to ACNC.
Indigenous corporation
Office of the Registrar of
Indigenous Corporations (ORIC)
2014 and 2015:
Report to ORIC.
No ACNC Annual Information Statement
required. ACNC accepts ORIC information.
Incorporated association
Co-operative
Charitable fundraiser
State and territory regulators
2014 and 2015:
ACNC Annual Information Statement and submit
the same financial report lodged with the state or
territory regulator.
How we use Annual Information
Statement data
• ACNC Register acnc.gov.au/findacharity
• data.gov.au
• ACNC sector research acnc.gov.au/research
– Ernst & Young’s Commonwealth Regulatory and
Reporting Burdens research report
– Curtin Charities 2013 Report
– Recognised assessment activity
– Overviews and snapshots
– Forthcoming Centre for Social Impact 2014 charities
report with ACNC financial information
More information
• Reporting guidance:
– Reporting annually acnc.gov.au/reporting
– Charity size acnc.gov.au/charitysize
– Due dates
acnc.gov.au/reportingduedates
– 2014 Annual Information Statement guide
acnc.gov.au/2014AISguide
– Financial statements
– acnc.gov.au/financialstatements
– guidance on understanding charity info
– acnc.gov.au/understandingfinancialinfo
Keep in contact with the ACNC
• Commissioner’s Column, email updates,
Quarterly Update
• Web guidance
• 13 ACNC (13 22 62) 9.00 am – 6.00 pm AEDT
• [email protected]
facebook.com/acnc.gov.au
@acnc_gov_au
youtube.com/ACNCvideos
THANK YOU
Next webinar
Before you apply to register as a charity
Monday 6 July 2015, 12.00pm to 1.00pm
Register at www.acnc.gov.au/webinars
[email protected]