Charities and new reporting requirements: the time to act is now!

REMINDER: From 1 January 2022 reporting periods onwards, Tier 1 and Tier 2 charities need to include service performance information alongside the financial statements they file with Charities Services.

Time to read: 3 mins

Tier 1 and 2 public benefit entities (PBEs), including larger registered charities, are required by PBE FRS 48 Service Performance Reporting to prepare a Statement of Service Performance (SSP).

This much awaited standard provides the opportunity to ‘tell your performance story’ and let your funders, clients, volunteers, community members and other stakeholders know what your key aims and objectives are, and how you have been achieving your goals.

As highlighted in our earlier article, PBE FRS 48 sets out the requirements for selecting and presenting service performance information. This information is unlikely to be new and you can use the performance data that you are already gathering and communicating to your governing body as a starting point.

Publicly reporting this information is a great way to let your stakeholders know about the valuable things your organisation has achieved and delivered during the year, as well as outline your challenges, or gaps in funding and other key resources, and how you plan to address these.


Collect your performance data now

We are now well into the ‘comparative period’ meaning that you should be thinking about what you intend to report on and the best way to collate this data. The key dates are:

Date Activity
1 April 2021 The date from which comparative information is required (assuming your charity has a 31 March balance date). You should start collecting details to report on your key performance measures from this date onwards.
1 January 2022 onwards ‘Go live’ date for PBE FRS 48 (reporting periods beginning on, or after, 1 January 2022)
1 April 2022 Start of the financial year for which most charities will be required to prepare their Statement of Service Performance (assuming a 31 March balance date)
31 March 2023 Balance date for which most charities will be required to prepare and report a SSP
31 September 2023 Date that your charity's first SSP is required to be filed with Charities Services as part of your Annual Return


Best practice

If you’re at a loss on where to start, it might help to look at organisations that have already reported service performance information. In 2021, the following entities were recognised in the CA ANZ Charity Reporting Awards:

Award Winner Highly Commended
Tier 1 Comprehensive Care PHO Visionwest Community Trust
Tier 2 (between $2m and $30m in annual expenses) Zealandia/Karori Sanctuary Trust The Fred Hollows Foundation NZ
Tier 3 (under $2m in annual expenses) Parent Aid North West Bellyful New Zealand Trust
Tier 4 (under $140k in annual operating payments) Citizens Advice Bureau Tauranga Track Zero
Sustainability Zealandia/Karori Sanctuary Trust and Kaipatiki Project Incorporated (joint winners)  

The Annual Reports and Performance Reports (for Tier 3 and 4 entities that have been required to report service performance information since 2015) can be found on the Charities Register.


Where can I find more information?

We have prepared a helpful information sheet on the new standard. This summarises what is required and can be a useful way to get all members of your team on the same page in developing an understanding of the service performance.

The External Reporting Board (XRB) has also prepared a comprehensive guide. This includes examples to help illustrate how you can report this information.

Our teams at Baker Tilly Staples Rodway also have a lot of experience in helping charities prepare service performance reports. Please get in touch with us to discuss where you are at and get some ideas on how to prepare your first SSP. Time really is of the essence so give us a call today.

Contact Nicola Hankinson at nicola.hankinson@bakertillysr.nz or on 04 496 9075, or get in touch with your local Baker Tilly Staples Rodway advisor for help with the new reporting requirements.   

DISCLAIMER: No liability is assumed by Baker Tilly Staples Rodway for any losses suffered by any person relying directly or indirectly upon any article within this website. It is recommended that you consult your advisor before acting on this information.

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