Social Accounting and Audit (SAA)
and the Social Audit Network
An introduction…
What I want to do…
• Why I got involved in social accounting…
• Definition, concept and principles…
• The Four Step Process (SAN)…
• Key characteristics
• Exercise looking at the snags and benefits…
SAA – background…
• Emerged from community enterprise in early 1990s – reasons…
• Developed through working with social enterprises – stress empowerment!
• Social Audit Network of practitioners• Manual and Quality and Impact Project 2005• Revised methodology in 2008 – Really Telling
Accounts!• Prove Improve Account! New Guide to Social
Accounting and Audit (2011)
Social accounting and audit is…
…a logical and flexible framework which enables your organisation to build on existing documentation and reporting systems and develop a process so that you can…
…Prove! - account fully for and report on your organisation’s social, environmental and economic performance and impact…
…Improve! – provide the information essential for planning future actions and improving performance; and
…Account! – be accountable to all those you work with and work for…
Understanding Social Accounting and Audit…
• Social Purpose – Social Accounting – Social Audit – Social Report
• Social = social + environmental + economic• Financial performance = organisational
sustainability• Social Accounting (social accountant) – Social
Auditing (social auditor) • Proving and Improving – and Accountability…• Performance (what we did and how well) +
Impact (what happened as a result)• Accounting, reporting or measuring?
Social Accounting and Audit: the Principles…
• Clarify purpose• Define scope• Engage stakeholders• Determine materiality• Make comparisons• Be transparent• Verify accounts• Embed the process
Social Accounting and Audit on One Page!An example of a vision: We shall always and constantly work to improve the quality of life of our residentsAn example of a mission: We improve the quality of life for residents in the area through creating local employment and providing services.
Step One: What difference do we want to make…
Step Two: How do we know we are making a difference…
Step Three: What is the difference we are making…
Step Four: Can we prove that we made a difference…
Objectives (social, environmental and local economic)
Activities Social Bookkeeping Records/Indicators Draft Social Accounts
Audited Social Accounts or Social Report
Outputs Outcomes
For example…1.To create jobs for locally unemployed people
For example…by:Providing jobs in the businessesHelping unemployed people find work
For example…The number of people employed; employment details, etcThe number of business advice clients, etc
For example…Changes: Opinions, views of clients, staff, etc. from annual questionnaires/Interviews, etcEvaluation forms, etc
Collating and analysing: Collect and collate information throughout the year and analyse it. Gather all the information together and ensure it can all be located.
Draft Social Accounts: All the social bookkeeping records and the results from consultation with stakeholders are gathered into Draft Social Accounts. These Social Accounts explain the performance and impact of the organisation.
The completed Key Aspects Checklist is attached to the Draft Social Accounts.
The Social Audit Panel is chaired by an approved Social Auditor who checks the Draft Social Accounts. They verify the data, findings from the consultation, the economic and environmental impact
The Social Audit Panel is impartial and checks that the draft Social Accounts are based on data which has been competently gathered and reasonably interpreted and a true reflection of what the organisation has done in the social accounting period
The organisation makes alterations and presents the revised social accounts or Social Report.
The Social Auditor will approve the Social Report and issues a Social Audit Statement on behalf of the Social Audit Panel
The Social Report may be condensed into a summary version and distributed widely.
2.To be a good employer
by:Providing training for staffGiving career guidance
Amount of trainingNumber of career guidance sessions, etc
Changes: Opinions, views from the staff questionnaires/Interviews.
3.To provide services for the community
by:Checking on elderly and housebound; etc.
Number of visits; amount of time spent; etc
Changes: Opinions, views from a survey, or feedback sheets, etc
4.To…. etc by: Etc… Etc… Etc…
Values (which underpin everything you do) Collect information on values
StakeholdersFor example, customers/clients; local community; directors; staff; volunteers; partners;funders; suppliers etc.
Records: Quantitative information kept monthly or quarterly…Questionnaires and interviews annually…Feedback and evaluation sheets collected throughout year…
Keep methods of recording SIMPLE and don't keep irrelevant information; use a variety of consultation techniques; ensure questions are clear and relevant.
Key Aspects Checklist: Keep annually
Six Features of the Social Accounting and Audit Process…
• It acknowledges all of the key stakeholders• It reports on all areas of your work and impact: social,
environmental and economic• Social Accounts report with both quantitative and
qualitative data• There is a rigorous verification process through the
Social Audit Panel• Social Accounts are produced and audited regularly• The findings are published and disseminated widely
Critical characteristics of SAA…
• Framework which can include different tools • Becomes embedded in the organisational life
cycle• Runs alongside financial accounts • Reports on social, environmental and
economic performance and impact• Done by and controlled by the organisation -
empowerment• Accounting to all stakeholders• Mix of measurement and “story”• Independent verification is crucial
Introduction to Social Audit Network (SAN)…
• For practitioners to promote and influence• Company limited by guarantee (8 Directors)• Members• Website www.socialauditnetwork.org.uk• Monthly email circular (1,400)• List of Social Auditors• Training – Social Enterprise Academy (ILM); Open
College Network • Trainers• Setting standards and new developments• Research