Further to our article in last month’s newsletter, ACNC is here to stay, the Australian Charities and Not-for-profits Commission (ACNC) has updated its transitional reporting guidance for the 2016 reporting period.
While the ACNC is working with the Government and state and territory regulators to remove duplication and reduce the burden of red tape, in the interim the ACNC has indicated on its website that it will continue to accept financial reports lodged with state and territory regulators for the 2016 financial reporting period.
Indigenous corporations registered with ORIC must continue to comply with ORIC reporting obligations and lodge financial statements with ORIC. No separate reporting is required to the ACNC as ORIC provides financial information to the ACNC to update on the ACNC register.
The same financial statements lodged with the state or territory regulator may be lodged with the ACNC for 2016. In such cases, the accounting framework noted in the Basis of Preparation is that required by the state or territory regulator. Only note ‘..in accordance with the ACNC Act 2012’ if all those requirements have been met.
Note that these exemptions do not apply to Western Australian incorporated associations, and Northern Territory and Tasmanian charitable fundraising organisations because these entities are not required to lodge financial statements in their respective states or territories. As such, financial statements for these entities must be lodged with the ACNC in accordance with ACNC financial reporting requirements.
Non-government schools that submit a financial questionnaire to DET do not have to provide financial information to the ACNC for the 2016 reporting period. The ACNC will accept the financial information lodged with DET as meeting their requirements under the ACNC Act to complete the financial information in the Annual Information Statement (and to lodge a financial report for medium and large charities).
However, if a fund or organisation associated with a non-government school registers separately with the ACNC as a charity (and has a separate ABN) it will be required to lodge financial statements with the ACNC. Examples include school building funds, scholarship funds, early learning centres and parents and friends associations. In such cases, the transitional exemption described above does not apply.