The Swiss accounting and reporting recommendations for charitable, social, non-profit organisations (Swiss GAAP FER 21) state that a performance report is an integral part of the annual accounts. Swiss GAAP FER 21, Clauses 42 and 43 present the minimum requirements for a performance report as follows:
The performance report provides information about the effectiveness and the efficiency of charitable, social, non-profit organisations in an appropriate format.
It must disclose:
- The purpose of the organisation,
- The directors/trustees and their term of office,
- The members of the management team,
- Connections to related parties,
- The defined objectives, a description of outputs with regard to the defined objectives, and the use of the available funds.
The explanations (Clause 59) contain the following regulations:
- The performance report is governed by the principles and guidelines of general accounting and reporting. Particular attention should be paid to consistency.
- Declarations in the performance report do not need to be audited by the auditors.
In general, the outputs are described and often backed up with statistics and key figures. These performance reports are often included in the annual report. To avoid duplication they are not usually repeated in the annual accounts.
The term “impact” is not explicitly mentioned in the Swiss GAPP FER 21 requirements, but it can be subsumed under the term “effectiveness”. There is a need for clarification of what might be an appropriate form in which to provide information about an organisation’s effectiveness, meaning the outputs and the effects.
For the reader to be able to gain a complete picture of an organisation’s effectiveness and efficiency, he or she requires information about its outcome objectives and data showing how much progress the organisation has made towards achieving them. He or she must also be able to see some relation to the means employed.
The example below shows how the results of an impact assessment of projects and programmes may be included in a performance report.