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Performance Reporting

In this article we focus on just one thing – the concept of Performance reporting. 

Telling people what they want to hear vs telling people what they need to know

Performance reporting is an art rather than a science because, while the Tier 3 and 4 not-for-profit reporting standards do require performance information to be included, ultimately it is up to you to determine what you report, and how. Do you go with a table outlining your key projects, or a timeline of events or maybe some pictures showcasing your performance over the year and feedback from your key clients or event attendees? Do you prepare a trendy infographic and ‘let a picture tell 1,000 words’? The key is to consider who will read your performance report, what they may be interested in, and the best way to convey this information.

There are many things to consider in determining what to include in your report and with the FRS-48 Service Performance Reporting implementation just around the corner for Tier 1 and 2 registered charities, this is a perfect time to start thinking about it. There is a fine balance between reporting too much and scaring people away with the detail, or too little, therefore raising eyebrows about the level of transparency. The reporting standards make it clear that you only need to report on the areas that are significant to the performance of your entity, rather than on every activity you deliver. Less, in this case, is more.

You need to ensure that your reporting is balanced, that you tell the good and the bad, not just what you think people will want to hear. ‘Faithful representation’ is one of the key concepts behind Performance reporting (and indeed financial reporting in general). Also some charities will need to have their non-financial information audited or reviewed. It is therefore important to ensure that information is accessible and verifiable.

 

Making the most of your Performance report

Each year, CA ANZ run nationwide Charity Reporting Awards, awarding a first place and highly commended in each tier. The 2020 Charity Reporting Awards could be your chance to shine. Entering is easy but you’ll need to get in fast. Simply send your financial statements (Tier 1 & 2) or your performance report (Tier 3 & 4) to charityreportingawards@charteredaccountantsanz.com by Friday 21 February 2020. More information on these awards can be found here.

Or if you are not keen to put yourself forward, it’s still worth looking at how some of last years winners presented their performance information to get some ideas for preparing your own 2020 Annual Report or Performance Report. The 2020 Charity Reporting Awards are being presented at the annual Charity Law Accounting and Regulation conference, which Baker Tilly Staples Rodway are once again proud sponsors of.

The 2019 Charity Reporting Award winners were:

 

Winner

Highly commended

Tier 1

The Electrical Training Company Limited

New Zealand Red Cross Incorporated

Tier 2 (between $2m and $30m in annual expenses)

Karori Sanctuary Trust (Zelandia)

Museum of Transport and Technology

Tier 3 (under $2m in annual expenses)

Bellyful New Zealand Trust

Storytime Foundation Trust Board

Tier 4 (under $125k in annual operating payments)

Empowered Learning Trust

Citizens Advice Bureau Tauranga

 
We are passionate supporters of encouraging more innovative and informative reporting within the charities sector. Charities do so much to help New Zealand that we think it’s important that you’re able to tell your performance story in the best way possible. If you would like some help in preparing a stand-out performance report, whichever reporting tier you are in, please give us a call. We would be only too happy to be involved.

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Tags Charities