When reviewing your charity’s financial report for 30 June 2017, you may find the checklist below a useful tool in ensuring you have complied with the financial reporting requirements of the Australian Charities and Not-for-profits Commission Act 2012 (Act) as well as the Australian Charities and Not-for-profits Commission Regulation 2013 (Regulations).
| Key questions for directors/CEOs to ask about the financial report | Comments |
1 | If the charity is a ‘medium registered entity’ has it had a review or audit engagement conducted? | Act: s205-25(2) Act: s60-20(1) |
2 | If the charity is large, has it been audited? | Act: s205-25(3) Act: s60-25 |
3 | Is the charity obliged to submit financial statements to a state or territory-based regulator? | If so, determine exactly what financial information is required (this varies significantly from one regulator to another) |
3A | Will the ACNC accept these state or territory-based regulator financial statements? | Refer ACNC web site |
4 | If no state or territory-based financial statements are required (i.e. financial statements prepared under the ACNC Act 2012), is the charity preparing general purpose or special purpose financial statements? | Regulation: s60.10 – Note 1 Regulation: s60.30(1) |
5 | If full GPFS - has an explicit and unreserved statement of compliance with IFRS been included? | If so, this is likely to be inappropriate. |
5A | If general purpose financial statements (GPFS) - have reduced disclosures (RDR) been applied? | Most charities are not publicly accountable (Tier 1) under AASB 1053 Application of Tiers of Accounting Standards and can therefore prepare GPFS with reduced disclosures |
5B | If RDR financial statements – have all recognition and measurement requirements been applied? | AASB 108, paragraphs 7 - 12 |
5C | If RDR financial statements – has an explicit and unreserved statement of compliance with RDR been included? | AASB 1054, paragraph RDR 7.1 |
5D | If RDR financial statements – has the aggregate total of key management personnel compensation been disclosed? | AASB 124, paragraph 17 |
6 | If special purpose financial statements (SPFS) – have all four primary financial statements been included (particularly the cash flow statement and statement of changes in equity)? | Regulation: s60.30(2) AASB 101 Presentation of Financial Statements, paragraph 10 |
6A | If special purpose financial statements – have all mandatory standards been identified in note 1, i.e.:
| AASB 1054, paragraphs 8(a) and 9 |
6B | If special purpose financial statements – has additional disclosure regarding non-arm’s length related party transactions been disclosed if necessary to give a ‘true and fair’ view? | Regulation: s60.10 – Note 2 |
7 | Has the appropriate financial reporting framework been identified in note 1, i.e. in accordance with:
| AASB 1054, paragraph 8(a) |
8 | Does note 1 disclose that the charity is a not-for-profit entity? | AASB 1054, paragraph 8(b) |
9 | Have all significant estimates and judgements been disclosed? | AASB 101, paragraphs 122 and 125 These requirements are mandatory, regardless of whether GPFS (RDR) or SPFS are prepared |
10 | Has a directors’ declaration (or other responsible entity’s declaration, as appropriate) been attached, stating whether in your opinion:
| Regulation: s60.15 |
11 | Has a review report or audit report (as applicable) been attached? | Refer questions 1 and 2 above |
12 | Has the annual information statement been prepared to accompany the financial statements? | Act: s60-5 |