This year has continued to be challenging for not-for-profit organisations across Australia. Issues in the broader macro-economic environment such as the cost of living and rental rises mean that services delivered by this sector are vital to those most vulnerable in our society and NFPs are facing into unprecedented demand for assistance. Combined with significant regulatory changes across the aged care and disability sectors coming out of recent Royal Commissions has meant that many NFPs are continuing to be asked to do more with less. This increased demand, coupled with inflation and the rising costs associated with service provision, has escalated operational hurdles for NFPs.
Against the backdrop of an increasing demand for services, the public call for transparency in both financial and operational aspects continues to be strong. This call isn't limited to a general understanding of how funds are being used, but extends to detailed insights into the organisation's operations, accountability measures, and impact assessments.
In addition to the economic and operational challenges, NFPs are also facing heightened expectations regarding their role in Environmental, Social and Governance (ESG) issues. NFPs are already major players in the social component of ESG, contributing towards social equity, community development, and societal wellbeing. While conversation around ESG has revolved around environmental sustainability, increasingly the focus on governance is taking centre stage to ensure the emerging opportunities and risks from technology and ESG are appropriately managed.
Local standard setters also continue to be active, working on amendments to accounting standards, reporting requirements, and interpreting and providing guidance in relation to these standards. This helps NFPs maintain transparency and accountability.
Financial reporting webinar for NFPs: 30 June 2024
KPMG’s May 2024 private sector NFP webinar covers:
- NFPs governance principles with reference to the updated principles released by the Australian Institute of Company Directors
- developments in ESG reporting specific to the not-for-profit private sector
- latest developments for NFP reporting regulations, including changes to ACNC and ATO reporting requirements
- focus areas for NFPs for 30 June 2024 financial reporting
- AASB activities relating to the NFP sector, including developments on the not-for-profit financial reporting framework.
NFP focus areas for 30 June 2024 financial reporting
Consider how the new governance principles can improve the governance in your organisation
Understand your responsibility under portable long service leave schemes and its accounting impact.
Stay up-to-date with AASB and ACNC developments.
Be alert to developments in ESG..
Understand the impact of new and amended Australian Accounting Standards and IFRIC agenda decisions.
