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Preparing your association's annual financial report

Your association must comply with the law when you prepare your financial statements and annual returns.

The type of report we expect depends on your association's reporting level.

Levels of association

We have 3 different reporting levels, which are based on the value of your association's current assets and revenue:

  • Level 1either the value of assets or total revenue is more than $100,000
  • Level 2either the value of assets or total revenue is between $20,000 and $100,000
  • Level 3both the value of assets and revenue is less than $20,000

Current assets are only those assets that easily convert into cash. They may include:

  • cash, including in bank accounts
  • shares
  • accounts receivable
  • short-term investments.

They do not include:

  • property
  • any depreciable assets (e.g. a car or machinery).

Total revenue is your total income during the last financial year before any expenses are deducted.

Auditing and verifying

Whether you need to appoint a registered auditor or verifier depends on your reporting level. Depending on what your association does, you may need to fulfil other requirements too.

Your auditor or verifier cannot be:

  • a member of your incorporated association’s management committee
  • an employee of the incorporated association
  • a business partner, employer or employee of a management committee member
  • a spouse or dependant of any of the above.

Find out more about auditing.

Level 1 associations

You must appoint a suitable person to audit your financial statements. This must be:

  • a certified accountant
  • a registered auditor.

Level 2 associations

You must appoint a suitable person to audit or verify your financial statements. This must be:

You must complete a full audit if your association must to do so under another law, including the:

  • Collections Act 1966 (e.g. if you fundraise)
  • Gaming Machine Act 1991 (e.g. if you have gaming machines, such as pokies).

In all other cases, verification is enough unless your members specifically want an audit done.

The verifier must view your financial statements. If they are satisfied, they will provide a written statement:

I have examined the association’s financial records and state that the association's financial records show that the association has adequate bookkeeping processes in place to correctly record and explain transactions to enable a true and fair financial statement to be prepared.

Level 3 associations

You must complete a full audit if your association is required to do so under another law, including the:

  • Collections Act 1966 (e.g. if you fundraise)
  • Gaming Machine Act 1991 (e.g. if you have gaming machines, such as pokies).

The auditor must be:

In all other cases, verification is enough unless your members specifically want an audit done.

Your president or treasurer will need to verify your financial statements. If they are satisfied, they will provide a written statement:

The association's financial records show the association keeps adequate financial records to correctly record and explain transactions, and to enable a true and fair financial statement to be prepared.