In line with our risk-based regulatory approach, the ACNC regularly reviews financial information provided by charities in their Annual Information Statement (AIS). For some medium and large charities, we also review the quality of annual financial reports (AFR).
These reviews ensure that:
- charities are providing correct financial information in their AIS
- AFRs are meeting the ACNC’s legislative requirements
- the public (including donors) can view accurate information on registered charities.
We use these reviews to improve each edition of the AIS to reduce error rates. We also use these reviews to refine and improve our education and guidance, ensuring information provided by charities on the Charity Register is accurate and accessible.
Our strategy for the 2018 Annual Information Statement
Financial information in the AIS
Improvements to each edition of the AIS have led to charities making fewer errors in their financial information.
For the 2018 AIS, we will continue to monitor the financial information provided by charities, with a focus on charities that have:
- incorrectly classified themselves as a Basic Religious Charity
- engaged in activities in the 2018 reporting period, but not provided financial information.
Quality of annual financial reports
In reviewing the 2018 AIS submissions, we will increase the number of AFRs that are subject to a review to 200 (compared to 150 for the 2017 AIS).
In particular, we will review AFRs prepared by:
- Tasmanian incorporated associations (these charities were previously subject to a transitional reporting arrangement which ended for the 2018 reporting period. The AFRs prepared by these charities now need to meet the ACNC’s legislative requirements)
- South Australian and ACT incorporated associations (these charities are currently in the second year of a transitional reporting arrangement)
- charities that have previously been subject to a review by the ACNC.
Reports from previous years' Annual Information Statements
This report explains the trends and errors identified in charities’ 2016 Annual Information Statements, as well as examining the ACNC's work in reducing error rates.
This report examined and analysed the data provided by charities in their 2015 Annual Information Statements. It focussed on the errors found in this data, how the ACNC identified the errors and what we will do to prevent them occurring in the future.
This detailed report aims to explain some of the material issues/errors identified and the results of this compliance activity in relation to the 2014 financial reporting period.