ACNC insights into financial reporting
The ACNC has released its latest analysis of charities’ financial reporting, focusing on a cohort of charities more at risk of making errors.
The analysis covered the 2023 reporting period, in which annual information statements and financial reports of 250 charities and reporting groups were expected.
The commission focused on medium-to-large charities that were more likely to have made errors in their reporting. The reviews looked at whether details contained in statements and reports were consistent. Specific reporting requirements – including recently-established ones on key management personnel and related-party transactions – were checked for correctness.
ACNC commissioner Sue Woodward said that the analysis was vital to learn where some charities might be experiencing challenges and to shape the quality and content of ACNC guidance.
Key findings were:
- Eighty-two per cent of charities had no material differences in financial information in their AFRs and AISs. In the remaining 18 per cent, corrections totalling $2.8 billion in total revenue and $5.8 billion in total assets had to be made, and
- Ninety-three per cent of charities correctly completed related-party transactions questions in their AISs.
Read the full report Reviewing charities' financial information and annual financial reports – 2023 is available on the ACNC website.
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