Welcome to our April Newsletter. The consultation period for International Non-Profit Accounting Guidance, Exposure Draft 1 (INPAG ED1) closed on 31 March, and we would like to thank everyone who participated by providing comments and taking part in the surveys. We were pleased to receive feedback from organisations and individuals in 67 countries. Your contributions will help in shaping the future.
In this month’s news, we make an exciting announcement about our new Steering Group Chair, which sets us up to think about sustainability and governance in the longer term. And for the first time we can share with you some work that has been going on behind the scenes since September, on a possible way to leverage INPAG to drive greater harmonisation in donor reporting. Read further to learn more about these updates.
We are thrilled to share the news of Kris Peach’s appointment as the new Chair of the project Steering Group for the IFR4NPO. As the former chair and CEO of the Australian Accounting Standards Board, she has extensive knowledge of national and international financial reporting and accounting standard setting. We would also like to take this opportunity to thank Pamela Monroe-Ellis for her valuable support and leadership steering the project over the last three years.
Kris said: “The IFR4NPO project is so important as it will give non-profits everywhere confidence in their financial reporting and build trust with their stakeholders. I think it’s critical to establish the right governance and strategic relationships to ensure INPAG will have sufficient credibility and enforceability to gain international acceptance and adoption, and that it can form a strong basis for future improvements in not-profit sector accountability.”
Click here to read the Press release.
Following consultations with key stakeholders, we have decided to delay the release of Exposure Draft 2. Initially scheduled for June 2023, it will now be released in September 2023. The change to the timing of ED2 will have a knock-on impact to ED3. We’ll keep you updated through this newsletter.
This additional time provides us with an opportunity to conduct further consultations on income recognition, grants payable and foreign exchange – the key areas that INPAG ED2 will focus on. We will be organising focus group sessions next month, with invitations going to individuals who have relevant knowledge and expertise. We look forward to the valuable insights that will be gained from these consultations.
Click here to request an invitation.
In September 2022, the project convened a working group to explore options for a standard format ‘Supplementary Statement’ that would cover specified activities such as for a particular grant or project. The proposals were presented to the Donor Reference Group (DRG), the Practitioner Advisory Group (PAG) and most recently to the Technical Advisory Group (TAG). You can view the proposals and challenges discussed here.
Download discussion paper.
As we aim to create globally applicable financial reporting guidance, we are seeking to be inclusive That includes involving non-English speakers in the work of the project. In a recent blog post, I highlighted some of the tools that the IFR4NPO project is using to facilitate effective communication across language barriers. We continue to learn!
Click on the link below to read the blog.
Advisory Group Meetings
On March 28th, 2023, the Technical Advisory Group met to discuss proposals for Supplementary Statements relating to specific grants or projects, and foreign currency illustrative examples. You can check out the papers and recording here.
Humentum has released its report titled “The Journey to Equitable Development: Annual Equitable, Resilient and Accountable (ERA) Index”. The ERA Index is a self-assessment tool that utilises Humentum’s 12 levers of change to provide an overview of an organisation’s progress towards developing equitable, resilient, and accountable operating models. The report highlights the journey of various organisations and provides a snapshot of their efforts to promote positive change.
We encourage you to read the report, most especially the sections on Funding & Financial Systems.
You can find the report by using the link below.
Thanks for taking the time to read our newsletter – I’d love to hear your comments or reactions.Please follow us on LinkedIn, Twitter and YouTube to stay connected.. If you received this newsletter from someone else, please subscribe to stay in touch.
I look forward to connecting with you next month!
– Samantha Musoke, IFR4NPO Project Director, Humentum