I am delighted to share this bumper newsletter, our last for the year. November was super busy! 7 webinars, with 2,738 registrations, from people in 123 countries. Don’t worry if you missed it – all the links are below, as well as information about how to share your opinions and feedback on the proposals in International Non-Profit Accounting Guidance, Exposure Draft 2. We are so grateful to those of you who attended and asked thought-provoking questions and made pertinent comments, which we will digest over the coming weeks.
Read on to learn about an exciting decision relating to harmonisation of grant reporting formats, and a significant expansion to the role of the project’s Donor Reference Group. We feature the Institute of Chartered Accountants of Zimbabwe, with its recent decision to focus on the non-profit sector, and their strategic appointment of Tonderai Washington(jnr) Mabambe as IFR4NPO Country Champion.
Before diving into the rest of the newsletter, we need your help! Please share our newsletter with one friends or colleagues in your network who you think would be excited to connect to the work we are doing. Thank you!
We know that many NPOs invest a huge amount effort preparing reports on specific projects or grants for donors. The formats for these ‘special-purpose financial reports’ are decided by funders, and are all different to each other. The call for harmonisation of donor reporting formats has been loud and clear for years. But the focus of INPAG is the presentation of general-purpose financial statements, that give a true and fair view of the entity as a whole, providing information relevant to a range of stakeholders including trustees, partners, civil society and regulators. Donor / project reporting formats are outside the scope of INPAG, a dilemma which I first articulated in this blog in 2021.
We are VERY excited to announce that next year, we will be releasing not only the final sections of INPAG, but an additional guide relevant to grant reporting. The name is not yet finalised, but we expect it will have the status of a ‘Recommended Practice Guide’ or equivalent. It will be optional for NPOs or their funders to use this format, allowing convergence over time. Watch this space!
In the October meeting of the Donor Reference Group, members agreed an amendment to their Terms of Reference to include:
• Forming a collective voice of financial statement users calling for continuous improvement of financial reporting standards over time.
• Advocating for the use and adoption of INPAG and the Recommended Practice Guides.
In agreeing to form a collective voice, the group will draft statements which all members can endorse, and which can be published. And in advocating for the use and adoption of INPAG and Recommended Practice Guides, we hope that DRG members will be an important force driving long awaited harmonisation.
Tonderai Mabambe, Technical Manager at The Institute of Chartered Accountants of Zimbabwe (ICAZ) has taken on the role of Country Champion. ICAZ is marking its recent decision to focus on the non-profit sector with a 2-day conference in December, that will include IFR4NPO.
Read their blog here.
We have been featured in articles by The Institute of Chartered Accountants in England and Wales (ICAEW) and Association of Accounting Technicians (AAT). Check out a couple of quotes from those articles here:
“Application of for-profit standards often results in misunderstandings between NPOs and stakeholders, including tax authorities. The consistency of using international accounting standards has delivered significant benefits to other sectors in the last 50 years – it’s our time.”
“There’s a huge burden on non-profit organisations where they have got multiple donors in producing different forms of reporting. And one of our big hopes from this project is to bring the donor community a bit closer together in terms of the kinds of financial reporting information they need.”
International Non-Profit Accounting Guidance, Exposure Draft 2 is open for public comment until 15 March 2024. Check out the range of ways you can engage below.
ED2 – Summary document
The full ED2 document runs to 235 pages and includes the authoritative guidance, implementation guidance, and basis for conclusions. The ‘Invitation to Comment’ document is just 33 pages, and includes a summary, diagrams, and specific questions for your feedback. This is available in English, Spanish and French.
ED2 – Explainer Video Series
The complete sets of explainer videos is now available in these playlists in English, French and Spanish. Each playlist includes 8 videos:
1. Overview of INPAG ED2
2. Common model for grant accounting
3. Grant expenses
4. Revenue from grants and donations
5. Donations in-kind
6. Inventories
7. Foreign currency translation and
8. Other topics
ED2 – November Webinar series
7 webinars, with 2,738 registrations, from people in 123 countries! Thank you for your active participation in the webinar series. You can now catch up on any missed sessions by accessing the recorded webinars through a dedicated playlist on our YouTube Channel. The descriptions include questions that were addressed.
ED2 consultation events
We will be hosting two virtual roundtable events on 27 February, to get feedback on key aspects of the proposals in ED2. Each session will have a diffeent focus, and include breakout rooms and time for discussion. You are welcome to attend either or both. Recordings will be shared afterwards, so for planning purposes, please only register if you plan to attend and participate in the event. We really look forward to hearing your thoughts and comments.
• 21 February: Virtual ED2 roundtable – Session 1 (10:00 – 11.30 UTC)
• 21 February: Virtual ED2 roundtable – Session 2 (14:00 – 15.30 UTC)
ED2 Step-by-Step Guide to sharing your views
Here’s a short ‘How-to’ video from Samantha Musoke guiding you through 4 simple steps.
ED2 – Share your voice
Your opinion and perspective matters. Please take a moment now to let us know if you intend to submit a response, by completing this form. This will enable us to support you as you need.
We are planning to visit countries in Africa, Asia and Latin America early next year, to meet with the respective Country Champions and national working groups.
• Asia: Indonesia, Singapore and Philippines
• Africa: Ethiopia, Kenya, Ghana and Morocco
• Latin America: Jamaica, Panama, Colombia and Peru
We will also be holding an Africa Regional Consultation event on 26 January 2024. This will be one-day, physical only event in Nairobi. Attendance at this event is by invitation only. Please let us know below if you would like to request an invitation.
• 26 January 2023: Invitation-only Africa Roundtable in Nairobi
The papers for recent Technical Advisory Group meetings held on 7 November and 12 December are now available on the website.
• Technical Advisory Group (TAG) meeting: 7 November 2023
• Technical Advisory Group (TAG) meeting: 12 December 2023
Thanks for taking the time to read our newsletter – I’d love to hear your comments or reactions. Please follow us on LinkedIn, X and YouTube to stay connected. If you received this newsletter from someone else, please subscribe to stay in touch.
In case you encounter any issues or questions while engaging with the resources provided for INPAG ED2, please reach out to us at info@ifr4npo.org, and we will work to make the process smoother for you.
Best wishes for the holiday season. I look forward to connecting with you next year!
– Samantha Musoke, IFR4NPO Project Director, Humentum
