The accounts of any person or organisation that holds
authority to conduct a fundraising appeal must be audited
annually by a registered company auditor.
To start with, make sure that your charitable organisation
keeps good records for the whole year. If this is done from the
beginning of the year, the job of finishing the end of year
reports is much easier and quicker.
If your organisation has an accountant or bookkeeper as an
employee, then they would normally prepare some of the reports
or at least prepare the information that goes into the reports.
Generally, most organisations would use an external
accountant to assist them in preparing the final reports.
The Quinn Group can assist you in preparing your financial
reports and ensure they are in line with the obligations and
regulations instilled by the Department of Gaming and Racing.
What records must you make sure your company keeps?
The Department of Gaming and Racing regulations require that
the following books of account and record are to be maintained:
- Cash book (for each account into which gross proceeds
are deposited)
- Register of assets
- Register of receipt books
- Register of tickets (where tickets are used)
- Petty cash book (where petty cash is used)
- Minute book (where authority holder is an organisation)
- Register of participants (where collectors engaged)
- Record of identification badges
- Register of collection devices (where such devices used)
- Record of employment for children receiving wage or
commission or some other material benefit
- Register of pecuniary benefits (where conflicts of
interest arise)
An annual financial report must be prepared and include
certain disclosures as attached
What are your obligations?
In addition to the requirements of the Charitable Fundraising
Act, the structure of your charitable organisation may dictate
other legislative and regulatory requirements that you must
follow:
|
Structure of Charitable Organisation |
Legislative Requirements
|
| Companies Limited by Guarantee
|
Corporations Act 2001
(C'th)
|
| Associations
|
Associations Incorporation
Act 1984 (NSW)
|
| Community Advancement
Societies
|
Co-operative Act 1992
(NSW)
|
Further, the need to prepare financial reports may be a
requirement of receiving government grants.
All charitable organisations have some form of governing
instrument, whether it is a constitution, a trust deed, or
rules. These normally require the preparation of financial
reports.
Each financial year a charitable organisation must prepare
the following documentation:
- Financial Statements incorporation a statement of income
and expenditure
- Information and notes to the financial statements
- A declaration by the president or principal officer of
the governing body
- An Auditor's Report that includes details from an audit
of the financial statements
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Depending on the size and structure of your Charitable
Organisation there will be varying levels of qualifications
needed by your selected Auditor.
The Department of Gaming and Racing's auditor qualifications
and experience policy states that a Charitable Organisation must
be audited by a Registered Company Auditor unless it comes under
the following size limits:
|
Fundraising income average over
the past two
years OR
value of assets
|
Auditor Qualifications |
| > $100,000 |
- Must be a member of either the Institute of
Chartered Accountants in Australia or CPA Australia
|
| > $20,000 - ≤ $100,000 |
- Member of the Association of taxation and
Management Accountants
- Member of the National Institute of Accountants
- Person holds a degree, diploma or certificate in
accounting
|
| ≤ $20,000 |
- Person holds a degree, diploma or certificate in
accounting
- Person with experience and expertise in the
field of commercial and government finance
- Person with sound accounting knowledge and
experience
|
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The Quinn Group has registered auditors within the firm and
conducts the audit in a streamlined process that simplifies your
effort needed in meeting your obligations. During an audit,
Quinns check the financial reports of the charitable
organisation to give the members an opinion as to whether the
financial reports are true and fair. This helps the members to
know what all the assets and liabilities are, and what has
happened to the money of the charitable organisation during the
last twelve months. The information obtained from the audit can
be used to make and evaluate decisions about scarce resources.
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Essentially, the auditor will need a copy of all your
financial statements for the past 12 months, including:
- Director's Declaration
- Statement of Financial Performance
- Statement of Financial Position
- Statement of Cash Flows
- Notes to Financial Statements
It is best if you have this information already prepared, and
then meet with the auditor before the auditor starts any work.
The auditor will also need:
- Receipts issued during the year
- Bank deposit book
- Cash book recording the receipts for the year
- Bank statements for the whole year for all bank accounts
- Cheque butts
- Cash book recording payments for the year
- File of invoices and other documents you have that
support each of the payments made. It is normally best to
have this in a file in the same order as the cheque butt
numbers.
- Wages book
- Employee files that have the history of annual leave,
long service leave, and sick leave taken
- Group certificates and the Tax office end of year
reconciliation
- Assets register, or details of all the assets that the
corporation bought or sold during the last twelve months
- Copy of the insurance policy documents and the insurance
invoices
- List of any debtors at June 30 (money owed to the
organisation)
- List of any creditors at June 30 (money owed by the
organisation to another organisation or person for goods or
services that had not yet been paid for at June 30)
- Minutes of meetings of the Directors, special general
meetings, or annual meetings held in the last twelve months
There may be other records needed. Some of your records may
also be on your computer. You should check with Quinns as to
exactly what is needed.
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The auditor is required by the Charitable Fundraising Act to
examine and provide the charitable organisation with a report
(to accompany the financial statements) which states whether:
- The Charitable Organisation has complied with relevant
legislation, accounting standards and the corporations
regulations;
- The financial statements show a true and fair view of
the financial result of fundraising appeals conducted during
the year;
- Records were properly kept;
- All fundraising monies collected have been properly
accounted for; and
- The financial viability of the company and ability to
pay its debts.
The Quinn Group has a specialist auditing division with the
experience and qualifications required to conduct and issue such
Audit Reports and can assist you preparing for your reporting
obligations. For more information
submit an online enquiry form
and a consultant will contact you on the
next business day.
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The audited financial statements must be submitted to an
annual general meeting of the membership of the organisation
within six (6) months after conclusion of the financial period.
At the annual general meeting the financial reports must be
formally adopted, and the motion recorded in the minutes.
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Our dedicated team consists of Registered Company Auditor's
who can assist you with Not-For-Profit and Charity audits.
Complete
and submit the Express Enquiry form on the top right hand side
of this page and we will contact you to discuss your enquiry
or call us on 1300 QUINNS (1300 784 667) or on +61 2 9223
9166 to arrange an
appointment.
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