06/08/2024
Who this applies to?
To meet their ACNC reporting obligations, charities whose financial year operates on a calendar year (1 January to 31 December) are required to submit their 2023 Annual Information Statement (AIS) by 30 June 2024.
What is required?
All charities must complete reporting on financial questions. Medium charities (revenue between $500,000 and $2,999,999) must also submit a reviewed or audited financial report and Large charities (revenue $3,000,000+) must submit an audited financial report.
Charities are now also required to answer questions about related party transactions.
What is a related party?
Small Charities have their own definition of a related party, which is “A person or organisation that is connected to the charity and has significant influence over the charity” this includes:
- The charity’s Responsible People and their close family.
- The charity’s senior management and their close family.
- People and organisations that can influence the charity’s decision-making.
- An organisation where a related party has significant influence or control over it. It also includes where they are a member of that organisation’s key management personnel.
Medium and Large Charities must apply to definition contained in the accounting standards (AASB 124 Related Party Disclosures). In summary, this includes:
- A person or organisation that is connected to the charity that has control over it.
- An organisation that has significant influence over the charity (e.g. parent entity of the charity).
- An organisation that the charity has significant influence or control over e.g. A subsidiary entity or associate.
- Where an organisation is a member of the same group as the charity.
- A person who is key management personnel and their close family members.
- Joint venturers.
- An organisation where a related party controls, has significant influence over or is key management personnel.
Any transaction with a related party must be reported – this is any transfer of services, obligations or resources. There is no requirement for payment. For example, this includes leases, guarantees, transfer of property including intellectual property, transfer of employees and volunteers, purchases, donations and sales.
If you require any assistance or have further enquiries, please contact our team at enquiries@griffinlegal.com.au