M1: Learner Manual

4.1. Funding and reporting

The Commonwealth and State/ Territory governments, philanthropic trusts and Australian Businesses provide a wide range of special purpose grants to incorporated organisations.

There are requirements for reporting attached to these funding grants. Government funding bodies need to know that the organisation has spent the funds in the agreed manner, so they can in turn meet accountabilities to taxpayers. Philanthropic trusts must meet their own goals and be answerable to their Boards of trustees.

The organisation receiving the funds must account for the expenditure of the funds and provide reports as specified in the funding agreement. These reports may be ongoing progress reports and /or overall outcomes of the project. The Board will be responsible for ensuring that record keeping and reporting requirements are met. Terms and conditions of grants may include:

Appropriate use of Funds and Grants

Your organisation cannot decide to use the grant for any other purpose than that for which it was provided. If circumstances change or unforeseen issues arise, the organisation may ask the funding body for a variation to the agreement. Any variation must be formally requested and if the funding body agrees to any changes they will inform the organisation in writing.

Reporting on Funding Expenditure

Some funding agreements may simply require one-off reporting on final project outcomes, whilst others may ask for progress reports at specified dates or intervals over the duration of the funding/ project period.

The level and frequency of required reporting will be stated in the details of each agreement. If your organisation receives funding to purchase equipment, the treasurer may need to provide the funding agency with:

·       evidence that three quotes have been received and considered by the Board

·       a rationale for the decision on which quote to accept (you might not always accept the lowest quote as there will be other factors to consider)

·       an acquittal sign-off that includes a copy of the invoice and evidence of payment

The final reporting will include an acquittal to demonstrate that the funds were spent for the purpose provided. This may include a statement of accounts prepared by the organisation’s treasurer and endorsed by the Board. 

Report on Project Performance

In addition to providing financial reports, there are usually requirements to report on the progress and outcomes of the project. These reports include evidence which demonstrates how the project met its objectives. If any project objectives were not able to be met, this must be explained also.

Internal or external evaluations of the project outcomes may also form part of the final acquittal.

Incorporated associations are also required to submit comprehensive reports annually on their financial situation in the Annual Statement of Accounts.