Medium charities are able to obtain a review instead of an audit and small charities are not obliged to have either. Nevertheless, many of those charities continue to obtain an audit, even though that is more onerous than a review and is required to be conducted by a registered company auditor. Mel Yates from the Australian Charities and Not-for-profits Commission discusses whether charities should be encouraged to take advantage of this opportunity for red tape reduction and what impediments to the conduct of reviews need to be overcome. Or, does an alternative solution need to be explored?
There will be an opportunity for input on the reporting and audit and review framework for charities as a review of the ACNC Act is expected to be announced before the end of 2017. The ACNC was created in 2012 by the Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) and has now been in operation nearly five years. Under the Charities Act 2013, the ACNC Act is required to be reviewed after five years in operation.