RECORDING AND REPORTING REQUIREMENTS RAMPING UP FOR CHARITIES
ACNC registered charities will be required to report related party transactions in their 2023 Annual Information Statement.
This means ACNC charities need to keep records about related party transactions from the start of their 2023 reporting period. For many charities, this is from 1 July 2022. Details to be recorded include
- Name and contact details of the related party
- Nature of relationship
- Details of transaction including its nature or description, amount and date
- Process adopted for approval of the transaction
For further details see the article about reporting for related parties on the ACNC website
In addition, there is an expectation that a charity will have an appropriate policy and procedure to properly identify and manage Related Party Transactions.
There are several difficult issues raised by related party transactions including privacy, confidentiality, significance of transaction, what is to be disclosed, what is to be reported to a regulator.
The appropriate management of conflicts of interest is often entwined with related party transactions. Charities must have an appropriate conflicts of interest policy and procedure.
If you need assistance, please contact me.
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