Making Financial Reporting Accessible

Community Networks • October 14, 2024

Simplifying year-end financial reporting is essential for smaller organisations.

Many of our member organisations, as well as Community Networks Aotearoa, are completing year-end financial reporting and preparing for Annual General Meetings. Presenting the results can be a stressful time, especially for smaller organisations that don’t have dedicated accounting teams. I have served as Treasurer for both large and small organisations, and along the way, I’ve found a few helpful practices. It’s important that everyone has a clear understanding of how the organisation is performing and its overall financial position. An operating loss for a single year doesn’t have to be alarming if the organisation has set aside reserves for a rainy day.

If you are preparing to report, remember that not everyone loves accounting and that financial reports can be difficult for many people to understand. Accounting terms and jargon can be confusing. For example, what most people commonly refer to as a "Balance Sheet" is formally known as a "Statement of Financial Position." When reporting, we need to be technically accurate, but we also need to communicate effectively with our stakeholders. This means reducing jargon whenever possible and using plain language.

When explaining revenue and expenses (also known as the "Statement of Financial Performance"), a page of numbers is great for those who want a lot of detail but can be hard to interpret for others. I find that a few pie charts or bar graphs can make the information more accessible. On the revenue side, a chart showing what came from contracts, fundraising activities, and philanthropic grants can visually display the relative size of each source. On the expense side, there is typically a much longer list of items. Grouping these into a few expense categories, such as staff & volunteers, administrative, and programme/delivery expenses, can make them easier to understand.

Providing the formal accounting reports, whether audited or not, is a typical requirement for an Annual General Meeting. Supplementing these with a few charts or graphs is a way to make the reports more accessible. This is especially important in the current operating environment, where many organisations are facing increased operating expenses (e.g., electricity, insurance, and fuel) and shrinking revenues from traditional sources.

For those wanting to increase their overall understanding of financial requirements, our Tick for Governance course includes a plain language module covering all the essentials.

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Hapori Aotearoa Conference Wrap-Up

By Community Networks • March 10, 2025

Last week Patrick represented CNA at the Hapori Aotearoa – Growing Communities Together in sunny Tauranga presented by Inspiring Communities and the Tauranga City Council. A two-day conference focused on providing practical resources amplifying community development. With each day having multiple concurrent workshops there were difficult (and esciting) choices to be made. The hottest topics were Social Return On Investments / Social Investment, Te Tiriti, and (no surprise) funding within the Sector. There were great speakers and a lot of table korero, spilling of tea, and sharing ideas and resources. Did you know there is a Regional Data Explorer on the Social Investment Agency website ? How might organisations use this to target their mahi and applications? “The Social Investment Agency’s Regional Data Explorer supports access to data for regional and sub-regional decision-making. It brings together 70 datasets or 'indicators' which can be filtered to meet a particular need." Another great workshop (Belinda Gorman ) looked into connecting with businesses to explore various ways of funding. Looking at alignment, how to approach and creating that relationship. One contribution we were able to make was a handy dandy doc on how to use the free version of ChatGPT to create a start – how to create a document that begins your journey on support, sponsorship and funding. Here it is – Using ChatGPT to Get $. And it was a great chance to catch up with Members – SociaLink (also a supporter of the conference); Volunteer Kapiti and Community Networking Trust. It was a time to catch up with friends from other organisations and to make new connections, both strengthening our reach around the Motu. Whilst conferences are expensive, attending can hit many birds with one stone and its important to get out of your own area, headspace to remind yourself that you are not alone in what’s going on; that there are people with ideas around you; and that (while it can be a draining experience) it is a fantastic way to recharge your spirit. We look forward to hosting our Members at our Members’ Only Hui on Friday, 7th November in Te Whanganui-a-Tara /Wgtn for exactly those reasons. Oh, did I mention it’s also our 50th Anniversary celebrations? Patrick Davies, Engagement Officer

End-of-Year Finance Checklist for Community Organisations in Aotearoa

By Community Networks • March 6, 2025

As we approach the end of the financial year, it’s a great time for community organisations and NFPs to check in on their finances.

Need Help Making 1+1 = 6?

By Community Networks • March 6, 2025

This month, we’re focusing on financial health—cash flow, grants, audits, and long-term stability. But this isn’t just a checklist—it’s an opportunity to tap into the collective wisdom of our community!