Which are the financial statements for NPOs?

Based on Law no.25/2018, dated 10.05.2018 “On Accounting and Financial Statements”,

the constituent parts of the financial statements for NPOs are:

  • Statement of financial position;
  • Statement of activities;
  • Cash Flow Statement;
  • Notes to the financial statements.

Is there a difference in reporting between small size and large size NPOs?

NPOs with an asset or income figure of more than ALL 5 million, comply accounting requirement with ascertained rights and obligations and prepare all financial statements according to paragraph 25 of the “National Accounting Standard for NPOs”. NPOs that do not meet this criteria i.e. NPO that do not have asset(s) or income figure of more than ALL 5 million apply cash accounting and prepare only the cash flow statement accompanied by explanatory notes on the type of activities or services they provide.

Is it mandatory for an NPO to certify its financial statements by a certified accountant or audit firm?

According to Law no.10091, dated 5.3.2009 “On the legal audit, organization of the profession of the registered accounting expert and the certified accountant”, NPOs are not obliged to perform statutory audit of their annual financial statements.

Do NPOs have a legal obligation to publish financial statements?

Starting from January 1st 2019, with the entry into force of Law no.25/2018 “On accounting and financial statements”, all NPOs in excess of ALL 30 million in assets or income in the financial statements, are obliged to publish their financial statements on their official website.