6.15 Reporting

15 May 2009


A key element to the successful operation of any organisation is timely action on those areas that require action. This can only be done if there is sufficient, timely and accurate information available to the people operating the NGB. Reporting on an annual basis is generally designed to provide information for external groups or individuals. However the people working in the NGB and the members of the Board will not have sufficient information to take action on particular issues if the only report available is the annual report.

 

 

Management Accounting

In addition to the keeping of statutory records for reporting purposes NGBs will also require internal information that provides support to its areas of activity. The process of keeping financial information internally for use by the organisation is known as Management Accounting. There is therefore a requirement that other forms of reports be available to the people working in the NGB and those on the Board.

 

 

Reporting Objectives

The objectives of the NGB's reporting policies and procedures should be to ensure that:

- Reports reflect the short, medium and long term strategies for the NGB

  • The Board and CEO should determine and prepare the long term strategic plan for the NGB, which should reflect the broad strategies in attaining the goals of the organisation as outlined in the strategy statement.
  • It is the CEO's responsibility to review the final strategic reports for the NGB prior to submission to the Board for approval. In the absence of a CEO, the Board should assign the responsibility to a member or a staff appointment.
  • Strategic planning, management control and operational control form the planning and control framework within organisations. Reports should reflect this process.
  • The Treasurer should review all financial reports of the NGB to ensure that its goals/requirements are being maintained and in line with Board expectations.


- Reports are in compliance with best practice, legal and regulatory guidelines and provide a true and fair view of the NGB's activities

  • It is the Board's responsibility to ensure that the NGB clearly addresses the stakeholders' requirements in their reporting.
  • The Board may need to consider whether the reports are realistic, whether there is a reasonable expectation that the reports are likely to resolve any problems foreseen and whether the Board are likely to put the reports into practice effectively.
  • The financial statements should be prepared in accordance with generally accepted accounting principles under the historical cost convention and comply with financial reporting standards of the Accounting Standards Board to provide a true and fair view of the NGB's activities.
  • Reports produced by the NGB should be prepared and presented in line with best practice, and within the legal and regulatory guidelines applicable to the organisation.
  • It is management's responsibility to monitor and implement report systems, or other means (formal or informal), for timely identification of warnings of future risks and uncertainties the NGB might face.
  • It is the Treasurer's responsibility to review the report information produced by the NGB to ensure that the quality of the systems (or other means, formal or informal) in place for producing this information is kept up to date.


- Reports are effectively planned, documented and authorised for the organisation

  • In order for the successful operation of the NGB there must be sufficient, timely and accurate information available to the Board. Reporting is a key aspect in converting the strategic goals of the NGB into monetary values.
  • The Treasurer is responsible for the following aspects of the reporting process:


- Reviewing the reporting process annually with CEO and management prior to approval with the Board.


- Aligning all expenditure with the relevant nominal (general) ledger account codes in accordance with the NGB's chart of accounts to establish a defined link between actual and budgeted expenditure.


- Monitoring and updating all actual expenditure against forecast. Calculating, reporting and explaining variances as part of the reporting process to the CEO, management and the Board.


- Reports are consistent and assumptions clearly stated

  • Reports for the organisation are prepared on a consistent basis and in an agreed standardised format.
  • All assumptions in the preparation of each section's report must be co-ordinated by the Treasurer to ensure reliability. Clarify, approve and clearly state the key assumptions underlying the reports appropriate in the circumstances.
  • The Treasurer must approve and authorise amendments or changes to the report format for the organisation. If there is a significant departure from the current reporting framework, then the CEO can authorise this to reflect a policy change for the organisation and subsequently obtain approval at the next Board meeting. Otherwise there should be no deviations from the agreed reporting framework.


- Reports should be monitored and reviewed periodically

  • It is the responsibility of the Treasurer to ensure that the reporting framework is reviewed by management, CEO and the Board as appropriate.


- Reports should be prepared in an efficient, effective and timely manner

  • It is the responsibility of the Treasurer to ensure that the organisation prepares reports in an efficient, effective and timely manner.