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The ACNC 2025-26 Regulatory Focus highlights the critical importance of good record-keeping, and the ACNC’s work to educate charities about their obligations.
Updated guidance states that appropriate and effective record-keeping is generally reflective of good governance, decision making, financial management and risk management.
It sets out that financial records must correctly record and explain how a charity receives and spends its money or other assets, a charity’s financial position and performance, and allow for true and fair financial statements to be prepared and audited or reviewed, if required.
Further, it states that operational records must show how a charity is entitled to be registered as a charity, to be registered with its subtype, meet tax law obligations and meet other obligations under the ACNC Act. There is a range of guidance, checklists and examples that will support charities of all sizes and types with transparency and record-keeping.
Meanwhile, the ACNC will undertake a program of work to support Australia’s compliance with the Financial Action Task Force obligations. This will commence with compliance reviews and consultation with charities that work overseas and those activities will inform our education and communications campaign work, to ensure that charities working overseas understand the risks of being misused for terrorism financing and how to protect themselves.
The focus will be to ensure charities:
- understand the risks they face due to their operating locations and activities
- have strong governance arrangements – including appropriate financial controls, as well as proper risk management policies and procedures
- have established appropriate due diligence measures – including oversight and monitoring of their partners, their overseas projects and funds sent overseas
- keep appropriate records and report annually to the ACNC, and
- recognise clear and accurate records are the foundation of good governance and risk management.
There is also guidance and a checklist to help your charity protect itself from the risk of terrorism financing.