Heads up for large charities & NFPs
Larger charities and not-for-profits will be required to formally report service performance information as part of their year-end financial statements for financial years ended 31 December 2022 onwards. While that may seem a while away, we’d suggest now’s the time to start thinking about how best to achieve this.
Delayed due to the Covid pandemic, the new reporting for affected organisations will apply for financial periods beginning on or after 1 January 2022. This is generally for those with more than $2 million of expenditure per year and reporting under the IPSAS or IPSAS RDR (Tier 2) public benefit entity financial reporting standards.
These organisations will need to start thinking about how to best ‘tell your story’ in accordance with the new standard (PBE FRS 48 Service Performance Reporting), including what measures you intend to include, and how the data will be accurately captured. This service performance information will be included as part of the year-end audit, so keeping an information ‘audit trail’ will be of particular importance.
Comparative information is required to be included for the specific performance measures disclosed. This means that, for an organisation with a 31 December 2022 reporting date, data will need to be collected for those relevant performance measures for the year ending 31 December 2021.