REVIEWS OF FINANCIAL STATEMENTS
FOR NON-PROFIT ORGANISATIONS
REVIEW OF FINANCIAL STATEMENTS
For charities, non-profit organisations and community groups
If you are a treasurer for a non-profit organization—whether it’s a sports club, community group, school PnC, or a charity — you know that you have to get the accounts audited. However, a full audit may not always be necessary.
A financial review provides clarity, transparency, and confidence without the complexity (or the price tag) of an audit
I offer Independent Review of Financial Statements that gives your members, donors, and regulatory bodies confidence in your financial health. Please note that I am not a registered auditor, and this service is a financial review, not a formal audit. This service falls under assurance but is less intensive than a formal audit, making it an affordable, effective option for non-profits.
Understanding Reviews of Financial Reports vs. Audits
A Review of Financial Reports is a simple check where the reviewer looks over the financial statements and doesn’t find any big problems that need fixing. It’s not as detailed as an audit and mostly involves reviewing the numbers and asking a few questions. An audit, on the other hand, is a more thorough check where every part of the financial records is carefully examined to make sure everything is correct and there are no serious mistakes.
What’s Included in Review of Financial Statements?
The reviewer states whether there is, or is not, anything that has come to their attention that causes them to believe the financial report does not meet the requirements of the ACNC Act (in all material aspects).
A review also evaluates whether your non-profit:
- provided all information, explanation and assistance needed to conduct the review
- kept good financial records so a financial report could be prepared and reviewed
- kept other records as required under the ACNC Act.
Who Can Benefit from a Financial Review?
- Sports Clubs: Ensuring transparent financial records for members.
- Community Organizations: Providing assurance to funding bodies and stakeholders.
- Schools: Maintaining compliance with financial governance standards.
- Churches and Faith-Based Groups: Demonstrating accountability to congregations.
Why Choose a Financial Review?
- Cost-Effective: Generally more affordable than a full audit.
- Efficient: Requires less time to complete.
- Accessible: Easier to arrange.
- Enhances Stakeholder Confidence: Provides assurance to members, donors, and regulatory bodies.
Regulatory Considerations
According to the Australian Charities and Not-for-profits Commission (ACNC), the requirement for a reviewed or audited financial report depends on the size of the charity:
- Small Charities (annual revenue under $500,000): it is optional to submit a financial report in the Annual Information Statement, so there is no ACNC requirement for a small charity to have its financial report reviewed or audited. However, ACNC encourages small charities to submit a financial report as part of the Annual Information Statement. If a small charity’s governing document requires it to submit financial statements, it must do so.
- Medium Charities (annual revenue of $500,000 or more, but under $3 million): Must have their financial report either reviewed or audited.
- Large Charities (annual revenue of $3 million or more): Must have their financial report audited.
It’s important to consult your organization’s governing documents to determine if there are specific requirements for audits or reviews.
If your organization seeks an independent, professional review of its finances without the complexity of a full audit, get in touch today to see how we can assist you.