Reporting Requirements of Various Charities
Your charity’s financial reporting requirements and other obligations to the ACNC depend on whether it is considered a small, medium or large charity.
Reporting Requirements by Size of Charity
The size of your charity is based on its total annual revenue for the period upon which it is reporting.
- Small charities have annual revenue under $250,000
- Medium charities have annual revenue over $250,000 but under $1 million
- Large charities have annual revenue of $1 million or more.
Small charities must submit an Annual Information Statement, and have the option to submit a financial report (although it is not required). If they do so, they can submit either a special purpose financial statement or a general purpose financial statement. They further have the option of choosing between cash or accrual accounting methods. They financial statements do not need to be reviewed or audited for ACNC purposes.
Medium and Large Charities
Medium charities also need to submit an Annual Information Statement. Since 2014, the Annual Information Statement has included financial questions, and have further been required to submit a financial report that is either reviewed or audited. They can submit either a special purpose financial statement or a general purpose financial statement to this effect, with the option to use transitional reporting arrangements.
Financial Reporting Requirements by ACNC Act
The registered charity must submit the Annual Information Statement to the ACNC no later than 31 December in the following financial year. For medium and large charities that are required to submit a financial report, there are further obligations under the legislation that must be complied with.
A registered charity’s financial report for a financial year consists of:
(a) the registered charity’s financial statements for the year (see section 60.10); and
(b) the notes to the financial statements (see section 60.10); and
(c) the responsible entities’ (being responsible officers of the charity) declaration about the statements and notes (see section 60.15).
The financial statements and notes:
(a) must give a true and fair view of the financial position and performance of the registered charity; and
(b) subject to Subdivision 60-C, must comply with the accounting standards.
The notes to the financial statements must further consist of:
(a) notes required by the accounting standards; and
(b) any other information necessary to give a true and fair view of the financial position and performance of the registered charity.
The responsible entities’ declaration is a declaration by the responsible entities of the registered charity that states:
(a) whether, in their opinion, there are reasonable grounds to believe that the registered charity is able to pay all of its debts, as and when they become due and payable; and
(b) whether, in their opinion, the financial statements and notes satisfy the requirements of the Act.
The declaration must be signed by a responsible entity that is authorised to do so.
How to Submit the Annual Information Statement
The Annual Information Statement is to be completed online through the ACNC portal. Each charity will need to login with their details and follow the steps shown to lodge their Statement.
In preparation for lodgement, each charity should consider each of the following points below and ensure that they have the requisite information and documents to satisfy the lodgement process:
- Confirm that their charity’s reporting is up to date and has completed its past Annual Information Statements (if applicable);
- Confirm their reporting period (financial year period or end of year period);
- Confirm charity size based off of revenue;
- Annual reports and project reports (regarding activities, beneficiaries, employees, volunteers, etc);
- PAYG payment summaries;
- Funder/donor/grant acquittal reports;
- The charity’s Incorporated Association Number (if the charity is an incorporated association), as well information about their annual general meeting, membership and fundraising (including any fundraising licence numbers);
- Balance sheet or statement of financial position, and statement of profit or loss and other comprehensive income for the reporting period;
If you have any questions regarding your charity’s reporting requirements and general compliance with the ACNC requirements, please contact a member of our charities team.