Test your understanding of donor adoption of INPAS Practice Guide 1: Supplementary Statements for Grant Reporting (PG1).

1. An NGO can only use the expenditure headings in PG1 for its budgets if required to do so by a donor.
2. Donor adoption of PG1 requires that all their grantee reports must be in PG1 format.
3. A donor using PG1 can make changes to the expenditure headings in PG1 for grant reports from its grantees.
4. PG1 is a cash basis grant reporting format.
5. PG1 requires that donor grant reports must be published as an annex to the NGO’s annual audited financial statements.
6. Reporting using the PG1 format means grantees must track expenses using a natural classification (ie by type of input, eg salaries, travel etc).
7. Reporting using the PG1 format means grantees cannot track expenses using an activity-based classification.
8. A donor adopting PG1 has to move each grant reporting cycle to match its grantee’s year end.
9. For a donor to adopt PG1 it means they must rely on the audit opinion in the whole-of-entity financial statements.

Clue: all the statements are false except one!