In a project commencing in 2002, CPNS and the School of Accountancy developed a standard Chart of Accounts and data dictionary for small nonprofit organisations that receive government funding.
The project aims were to rationalise the acquittal requirements placed on nonprofit organisations by government funders. Research evidence found that there was little consistency between departments in the financial treatment and accounting terms used in grant and tender reporting creating a heavy compliance burden on NPOs when acquitting grants. Evidence supported the notion that NPOs manually recalculated and rekeyed, often back to vouchers, their financial transactions when reporting on expenditure in specific programs.
The Standard Chart of Accounts was developed through extensive consultations with Queensland Treasury, government departments, nonprofit peak bodies, a wide range of nonprofit organisations and professional advisors. The Standard Chart of Accounts was launched in Queensland in October 2006 with a rollout to nonprofits during May to July 2006. The project was supported by Queensland Treasury working with government departments, nonprofits and peak bodies.
To fund this initial research and implementation, an ARC Linkage grant was awarded to QUT and Treasury as well as extending research into wider accountability issues (2004-2007).
As a supporting activity, the project has undertaken a Compliance Survey of the paperwork burden on NPOs when submitting applications for grants, when tendering, when completing acquittal forms, or submitting other government paperwork. The aim here is to capture the compliance burden and costs generated by all levels of government. CPNS has published a working paper (No CPNS 39) on the results of this research How Long is a Piece of Red Tape? The Paperwork Reporting Costs of Government Grants.
After the successful launch of a Standard Chart of Accounts in Queensland, discussions have commenced with other government jurisdictions. The New South Wales government and nonprofit peaks and bodies worked to implement a Standard Chart of Accounts during 2007 with work also commenced in Victoria and Western Australia. Project working parties are reviewing an implementation plan in both Victoria and Western Australia during the second half of 2008.
Links to Project Resources
Download a description of the overall project (PDF, 87kB) or visit the Standard Chart of Accounts page on our Developing Your Organisation wiki to access data files, training manuals, bibliography, useful websites, FAQs, etc.
Standard Chart of Accounts for Queensland
Standard Chart of Accounts for New South Wales
Training sessions on using the Chart of Accounts are available via audio and video links.