Many New Zealand charities are struggling for success with their applications to funding bodies. A similar fear in relation to funding from the general public has also been expressed by charities. This has arisen now that their financial statements will be more publicly available via filing on the Charities Commission website as part of their annual return
As auditors we see this issue resulting in clients sometimes trying to ‘massage’ their financial results so they don’t appear wealthy. In some cases quite considerable lengths are employed to in order to achieve a result of “looking poorer”. This generally puts them in direct conflict with following generally accepted accounting practice.