Welcome to our first newsletter of the year. Building on the momentum of our highlights from 2023, this year our focus is on finalising INPAG (International Non-Profit Accounting Guidance) to be ready for adoption, including launching the third and final Exposure Draft, and evaluating all the responses.
ED2 is still open for public feedback until 15 March 2024 – check out the resources and links below to engage and contribute.
Read on to learn more about our decision to provide guidance on harmonised donor reporting, new appointments to the Governance Group, our visits to countries in Africa, Asia & Latin America, and finally some free resources from the Institute of Chartered Accountants of England in Wales.
We know that many NPOs invest a huge amount effort preparing reports on specific projects or grants for donors. The formats for these ‘special-purpose financial reports’ are decided by funders, and are all different to each other. The call for harmonisation of donor reporting formats has been loud and clear for years. But the focus of INPAG is the presentation of general-purpose financial statements, that give a true and fair view of the entity as a whole, providing information relevant to a range of stakeholders including trustees, partners, civil society and regulators. Donor / project reporting formats are outside the scope of INPAG, a dilemma which I first articulated in this blog in 2021.
We are VERY excited to announce that this year, we will be releasing not only the final sections of INPAG, but an additional guide relevant to grant reporting. The name is not yet finalised, but we expect it will have the status of a ‘Recommended Practice Guide’ or equivalent. It will be optional for NPOs or their funders to use this format, allowing convergence over time. Watch this space!
We are thrilled to announce the appointments of Hikmet Abdella (Ethiopia), Mark Jerome (Vietnam / UK) and Risper Olick (Kenya) to the INPAG Governance Group.
The strength, credibility, diversity and independence of this Governance Group is vital to ensure the ongoing development, maintenance and sustainability of INPAG even after its release in 2025. Their role includes oversight of the rigorous international due process that goes into standards development, and means that INPAG, once published will be suitable to be adopted as a mandatory requirement in countries that choose to do so for their NPOs.
International Non-Profit Accounting Guidance, Exposure Draft 2 is open for public comment until 15 March 2024. Check out the range of ways you can engage below.
1. Getting started – Engaging with INPAG ED2 101!
2. Read the summary document
3. Watch the explainer videos
4. Check out the Q&A from our November webinar series
5. Register for the consultation events on 21 February
6. Let us know that you plan to submit a response
Your voice matters!
ED2 – Step-by-Step Guide to sharing your views
Here’s a short ‘How-to’ video from Samantha Musoke guiding you through 4 simple steps.
ED2 – Summary document
The full ED2 document runs to 235 pages and includes the authoritative guidance, implementation guidance, and basis for conclusions. The ‘Invitation to Comment’ document is just 33 pages, and includes a summary, diagrams, and specific questions for your feedback. This is available in English, Spanish and French.
ED2 – Explainer Video Series
The complete sets of explainer videos is now available in these playlists in English, French and Spanish. Each playlist includes 8 videos:
1. Overview of INPAG ED2
2. Common model for grant accounting
3. Grant expenses
4. Revenue from grants and donations
5. Donations in-kind
6. Inventories
7. Foreign currency translation and
8. Other topics
ED2 – November Webinar series
Would you like to catch up on any missed sessions from the 7 webinars we held focusing on topics in INPAG Exposure Draft 2? You can access the recorded webinars through a dedicated playlist on our YouTube Channel. The descriptions include questions that were addressed.
ED2 consultation events
We will be hosting two virtual consultation events on 21 February, to get feedback on key aspects of the proposals in ED2. This is not a training, rather an opportunity for those with opinions about the proposals to share and discuss.
Each session will have a different focus, and you are welcome to attend either or both. Recordings will be shared afterwards, so for planning purposes, please only register if you intend to participate in the event. We really look forward to hearing your thoughts and comments.
• 21 February: Virtual ED2 roundtable – Session 1 (10:00 – 11.30 UTC)
• 21 February: Virtual ED2 roundtable – Session 2 (14:00 – 15.30 UTC)
ED2 – Share your voice
Your opinion and perspective matters. Please take a moment now to let us know if you intend to submit a response, by completing this form. This will enable us to support you as you need.
We are currently visiting countries in Africa and Asia to meet with key stakeholders such as respective Country Champions and national working groups.
• Asia: Indonesia, Malaysia and Philippines
• Africa: Ethiopia, Kenya, Ghana and Morocco
• Latin America: Jamaica, Panama, Colombia and Peru
We will also be holding an Africa Regional Consultation event on 26 January 2024. This will be one-day, physical only event in Nairobi, and we eagerly anticipate the perspectives of NPOs, accountants, regulators and donors on the continent, and look forward to rich discussions and feedback. We will be holding further meetings in Latin America in February and are planning further outreach later this year.
In 2023, the Institute of Chartered Accountants of England & Wales (ICAEW) decided to make their Charities Community open to non-members, anywhere in the world, for free! Certainly, some of the content is specific to UK Charities, rather than NPOs worldwide, but we didn’t want you to miss out on the free events and resources that could be of value to you. Here’s the link to join. And here’s an example of a resource I particularly enjoyed recently: Dispelling common myths.
Thanks for taking the time to read our newsletter – I’d love to hear your comments or reactions. Please follow us on LinkedIn, X and YouTube to stay connected. If you received this newsletter from someone else, please subscribe to stay in touch.
In case you encounter any issues or questions while engaging with the resources provided for INPAG ED2, please reach out to us at info@ifr4npo.org, and we will work to make the process smoother for you.
Best wishes for the holiday season. I look forward to connecting with you next year!
– Samantha Musoke, IFR4NPO Project Director, Humentum
