Checklist for NFP Reporting

The Institute of Chartered Accountants in Australia (ICAA) has prepared a checklist for Not for Profit organisations to help in preparing their annual reports.

The checklist is based on a review of NFP reporting carried out by a taskforce comprised of senior members of ICAA.

The review concluded that while their was a satisfactory level of compliance with the Australian financial reporting framework there are a number of ways in which NFP’s can improve their reporting to ensure they:

– explain what the NFP is trying to do
– explains how the NFP is going about it
– shows whether the NFP has achieved its objectives during the year
– explains the NFP’s plans for the future and
– helps the reader of the report understand the organisational structures and activities of the NFP

The ICAA says that while the checklist refers to certain financial and non-financial reporting issues it should not be considered a complete guide to NFP reporting.

The convenor of the NFP Review Taskforce, Stewart Leslie says the checklist merely highlights issues noted during the review that the taskforce believes should be consider by organisations when they are preparing their report.

He says ICAA strongly encourages users of the checklist to discuss any issues arising from its completion with the organisation’s auditors.

He says the ICAA is about to commence a review of current reporting with a view to releasing an updated report in February 2006.