News

Transition Times

DATE: FEBRUARY 2015

NEW REPORTING STANDARDS FOR REGISTERED CHARITIES

Effective from 1 April 2015, there will be new reporting standards applied to all registered charities.  These standards are to bring consistency and transparency to charities’ financial reporting.

There are four tiers that apply to different sizes of organisation, so smaller organisations have more simplified requirements.  This Transition Times is about Tiers 3 and 4.

  • You will not need to use the new requirements until you have completed a full financial year after 1 April 15. eg: if your financial year end is 30 June 15 you won’t prepare financial statements for CS until 30 June 16.
  • Charities Services has assured CNA that they realise the first couple of years will be a period of learning for Charities and the focus of CS will be helping Charities to understand and help with compliance to the new standards.
  • The non-financial reporting portion of your Charities Accountability requirement means it is important for you to log what you do, how much you do of it, and any results that you can gather.  If you don’t already do this, we suggest you begin collating this information now.
  • We suggest that you go to a Charities Workshop being held around the country. Find out about them here.
    Charities Services Workshops for Tiers 3 and 4 : 2015

Double check the Charities Services Website to check which tier you are in; to check your reporting dates, and anything else you need to know.

As well as the new reporting standards, there are also some new audit and review requirements that become effective from 1 April 2015, which result from recent changes to the Charities Act.

These new requirements only apply to charities with expenditure over $500,000 a year.  However, even though Charities with expenditure of less than $500,000  are not required by law to have an audit or review, they may be required by their rules or constitution or as a condition of receiving a grant to have their financial statements audited or reviewed.
Be aware of these other possible requirements.

More information is available at these places.
Website: https://www.charities.govt.nz/
Workshops:
0508 CHARITIES

Photo: Jason Pratt