02 9370 6200
January 2023 NFP accounting kick-off
In this January 2023 NFP accounting kick-off, we give a snapshot of what we’ll be watching over the next six months in not-for-profit accounting.
We’ll naturally be mindful of pertinent accounting reporting and submission dates like EOFY and the necessary Annual Information Statement (AIS) submission deadlines, but there are also a few other industry activities we’ll be watching this year.
Comments from the commissioner
In her latest column, ACNC Commissioner Sue Woodward highlights the value ACNC’s charity data adds to the economy. She says: “With our data, we can look at trends across volunteer numbers, charity size, purpose, activities, and locations, [which] comes from our core work – maintaining the ACNC Charity Register.”
We look forward to the release of the ninth Australian Charities Report in May.
NFP budgets and revisions
Our clients with a June year-end often like to revise budgets after they’ve received their mid-year (December) results.
As you preview and prepare your 2023 financial calendar, remember to include planning time for budget preparation, revisions and submissions. Come April 2023, not-for-profit organisations must start preparing their 2024 annual budgets.
Before diving headfirst into this financial task, take some time to review our tips when preparing not-for-profit budgets.
Annual Information Statements (AIS)
The ACNC Annual Information Statement is the annual compliance requirement for all charities. A ‘small’ charity – remembering that threshold is now up to revenue of $499,999 – doesn’t need to lodge financials, but every charity must lodge an AIS.
According to the ACNC website, the AIS supports the ACNC work to:
- maintain, protect and enhance public trust and confidence in the sector through increased accountability and transparency
- promote the reduction of unnecessary regulatory obligations on the charity sector.
The AIS asks about the type of work and activities carried out during the year, who the charity supports (demographic info), the number of employees and some basic income, expense and balance sheet information.
The information is lodged via the charity portal, which only authorised people of a registered charity can access.
EOFY 2023 and audit season
Keep your ‘eyes on the prize’ working towards the end of financial year. Don’t get caught in the trap of how far away this deadline appears, especially if you have under-spent funding to deal with – give it some serious consideration now, June is too late.
Make sure you’re closing out your monthly financials accurately. Take some time to ensure your project or cost centre allocations are good – making any necessary adjustments now will help ensure a smooth EOFY preparation process.
Ahead of the 2023 audit season (yes, we know – still a while away), we thought we’d share some video and blog links to browse through for EOFY and the audit season before the year gets into full swing.
Check out our EOFY video series:
EOFY Tips : Payroll cut offs
EOFY Tips : Requirements check list
EOFY Tips : Annual General Meeting
EOFY Tips : June 30th deadline
Additional resources:
Hot audit topics
How to choose an NFP auditor
Is an auditor necessary for your organisation?
AASB discussion paper update
In a previous blog, we shared comments on the AASB’s proposed Tier 3 Standard for NFPs.
In a nutshell, AASB Acting Technical Director Carmen Ridley and Board Member David Holland are calling for feedback from the industry on proposed changes to reporting requirements for not-for-profit entities.
The discussion paper proposal is a refreshing bout of red-tape reduction from the AASB to create an additional tier for NFP preparers of General Purpose Financial Statements.
It intends to respond to stakeholder concerns that the current AASB reporting requirements are overly complex for smaller not-for-profits and highlights the need for the reporting requirements to be a “simpler, proportionate, consistent and transparent framework for application by smaller NFP entities that meets the needs of users of their financial statements.”
Our CEO, Kirsten Forrester, says that the proposed Tier 3 changes are a welcomed shift.
The AASB is encouraging feedback from NFP industry stakeholders by 31 March 2023. Information and links can be found here.
The next outreach event is on 3 February, and the following one on 1 March 2023.
You can provide feedback in many ways, and we believe the proposed Tier 3 standard would be a good thing for NFPs – we encourage you to explore the information and respond to the AASB.
We know not-for-profit accounting
Thinking about working with our team of not-for-profit accounting specialists? Contact us today.
