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Accounts
All incorporated associations must record and explain the transactions of the association and their financial position. Prescribed associations have additional requirements.
Prescribed associations
Incorporated associations that are prescribed - for example, have gross receipts of more than $500,000 per year - need to lodge a financial statement called a periodic return.
Gross receipts refer to the total income of the association, including any grants or subsidies provided by local, state or the Australian Government, but not including money received that is a:
- membership fee, subscription or other fee paid by a member
- devise or bequest (meaning property transferred through a will)
- proceed from the sale of any association assets not originally purchased for resale.
If the incorporated association is not a registered charity with the Australian Charities and Not-for-profit Commission (ACNC), the periodic return must be lodged with Consumer and Business Services (CBS).
Prescribed associations that are registered with the ACNC
Prescribed associations that are also registered charities with the ACNC need to lodge an annual information statement with the ACNC. If a prescribed association that is a charity has submitted its annual information statement and financial report to the ACNC, it doesn't need to lodge a periodic return with CBS.
Preparing financial statements
Prescribed associations must follow the current legal standards of accounting and financial reporting, including an annual audit. You must ensure:
- accounts are prepared
- committee’s statement and report are prepared
- accounts with the committee’s statement attached are submitted to the auditor
- the committee is given the auditor’s report
- the documents described in 1 to 4 above are presented to members at the Annual General Meeting.
Auditors
The auditor must be independent and be one of the following:
- registered company auditor
- member of the Australian Society of Certified Practising Accountants or the Institute of Chartered Accountants
- someone approved by the Corporate Affairs Commission - restrictions apply.
Committee members or anyone with influence in the association can't conduct the audit (including people who work with them, such as staff members of the treasurer's local business).
The auditor’s report is given to the committee no more than 5 months after the end of the association's financial year and states if:
- recorded activities and finances are accurate
- accounts and auditors' reports of any subsidiary or trust have been examined
- all information was received - including answers to the auditor's questions.
The auditor must advise CBS immediately in writing if:
- there is a deficit for activities or finances
- the auditor has been removed - include the reason
- the association doesn't comply with the Act - eg AGM hasn’t been held.
You may be able to apply for an exemption or extension.
Investing or depositing money
An incorporated association must not invite any person who is not a member to invest or deposit money with the association.
If an exemption is granted to this, the association will receive a specific disclosure statement form that must be given to the person investing beforehand.
Prohibiting profits for members
Unless the commission specifically approves, an incorporated association must not conduct its affairs to secure profits for members or their associates.
This doesn't apply to:
- remuneration for work done by a member of the association
- any payments that are incidental to association activities.
Contact CBS Associations and Cooperatives
Email: associations@sa.gov.au
Phone: 131 882, choose option 7
You can also book an appointment with the Associations Team for further assistance.
