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 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 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

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.aucharity.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/webinarsacnc.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 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 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/financialstatementsacnc.gov.au/financialstatements Transitional financial reports –Transitional financial report templates (medium and large charities) acnc.gov.au/templates 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/templatesacnc.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 charityRegulatorArrangement 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 charityRegulatorArrangement Company or registrable Australian body Australian Securities and Investment Commission (ASIC) 2013: ACNC Annual Information Statement and ASIC annual return. Financial report to ASIC onwards: ACNC Annual Information Statement and financial report to ACNC. Indigenous corporationOffice 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 regulators2014 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/findacharityacnc.gov.au/findacharity data.gov.au ACNC sector research acnc.gov.au/researchacnc.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 acnc.gov.au/reporting –Charity size acnc.gov.au/charitysize acnc.gov.au/charitysize –Due dates acnc.gov.au/reportingduedates –2014 Annual Information Statement guide acnc.gov.au/2014AISguide acnc.gov.au/2014AISguide –Financial statements –acnc.gov.au/financialstatementsacnc.gov.au/financialstatements –guidance on understanding charity info –acnc.gov.au/understandingfinancialinfoacnc.gov.au/understandingfinancialinfo

Keep in contact with the ACNC Commissioner’s Column, updates, Quarterly Update Web guidance 13 ACNC ( ) 9.00 am – 6.00 pm AEDT 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