The ACNC allows certain charities to report their Annual Information Statements and/or Annual Financial Reports as a “Group”. To take advantage of this option, ACNC approval is required.
That approval is granted to subject to certain conditions, which are published on the ACNC website.
New conditions have been added for the 2019 financial reporting year. These are:
- Special purpose financial statements must include compliance with Australian Accounting Standard AASB 124: Related Party Disclosures, either in full or at the level required by the Reduced Disclosure Regime.
This extra condition will not affect reporting groups that are not required to submit financial statements (where all members of the group each have revenue less than $250,000),
- All reporting groups must comply with ACNC reporting obligations, particularly the requirement to submit the Annual Information Statement by the due date.
From the 2019 reporting period, the ACNC will review the approval of reporting groups that submit their Annual Information Statement and financial report late for two reporting periods (these periods do not need to be consecutive), unless they received an extension approved by the ACNC Commissioner.
Many people in the NFP sector consider that any charities that accept public money, either through donations or grants, should already comply with the disclosure requirements of AASB 124, to give proper transparency over the use of those funds.
The second condition noted above appears to have been introduced to assist the ACNC in “encouraging” a number of groups who have continually been late in their financial reporting.
Should you have any questions in relation to these conditions, and how they will affect your organisation, please do not hesitate to speak with your HLB contact.