NFP Board Finances Part 1 – Unpacking statements, balance sheets and reporting

Many directors without formal financial or accounting backgrounds find it challenging to interpret the three core financial statements presented at board level. As a result, reliance on the CFO is common despite directors retaining ultimate responsibility for financial oversight. Recent research indicates that 78 % of directors lack minimum financial literacy expected, with 30% relying solely on their CFO.

Part 1 will provide directors with:

• Understanding the distinction between not-for-profit (NFP) and charities, including typical legal structures and tax considerations 
• Financial reporting and audit obligations for charities under the ACNC framework 
• An introduction to the three core financial statements: balance sheet, income statement of cash flow statement 
• A practical step-by-step approach to analysing and interpreting a charity’s balance sheet 
• The key questions directors should be asking when reviewing balance sheet information with management. 

Directors will gain a clear, practical framework to interpret financial information with confidence, enabling you to engage more effectively in board discussions, challenge assumptions, and fulfil your financial governance responsibilities across NFPs and charities.